International financing

International financing

International financing

Open up new markets and manage your international operations quickly, securely and efficiently. This is why we place our extensive foreign branch network and a large team of experts at your service, making us your best ally.

  • Highly specialised team in both national and international markets.
  • Financing products for importers, exporters, forfaiting, infrastructures or investment.

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  • Importers
  • Exporters
  • Forfaiting
  • Infrastructures
  • Investment

If your company is an importer, you have the possibility of financing all or part of the payment to your foreign supplier. The duration is from the date of payment by the financial institution to the maturity of the agreed operation. 

This type of credit is in euros or any officially quoted currency and can be applied for by resident or non-resident individuals or legal entities.

Advantages for your company as importer:

Advantages for your company as importer:

  • Minimize finance costs and foreign exchange risks. 
  • Greater margin for negotiation, as you can offer your suppliers longer payment periods. 
  • Gives you bargaining power to obtain better prices or discounts in the operations, as you can offer to pay in cash.

Advantages for exporters:

Advantages for exporters:

  • Avoid commercial, political or exchange rate risks by being paid in cash.
  • The reference rate is usually the EURIBOR, although the LIBOR may also be used for operations in other currencies.

Foreign exchange risk:

Foreign exchange risk:

If the financing is in euros, the importer does not assume any exchange rate risk. If it is in another currency, they assume an exchange rate risk and agree to the refund of currencies whose countervalue will not be known until the maturity date. 

For transactions with emerging countries, it is essential to have CESCE insurance coverage for political and trade risks. BBVA grants the foreign importer up to 85% of the total amount to be financed directly. Moreover, for the remaining 15% not covered by CESCE, we can offer you financing through the Accompaniment Loans.

If your company is an exporter, you can request the total or partial financing of the payment of your sales abroad: 

  • Financing the manufacturing period between the time you receive the order and the delivery of the merchandise or service (pre-financing).
  • With post-financing, if your company sells on credit, financing the deferred payment collection.

Advantages for your company as exporter:

Advantages for your company as exporter:

  • Greater competitiveness by having financing and also minimizing the finance costs and foreign exchange risks derived from the operation.
  • Possibility of carrying out more sophisticated operations with a greater risk that require guaranteeing the credit provided.
  • Liquidity in order to carry out your sales plans and manufacture the orders or execute the services, being paid in advance for exports.

Advantages for your importing customer:

Advantages for your importing customer:

  • As your company will have greater financial flexibility, you will be able to accept more interesting terms for your overseas customer. The reference rate will usually be the EURIBOR, although the LIBOR may also be used for operations in other currencies.

Foreign exchange risk:

Foreign exchange risk:

If the financing is in the same currency as the trading operation, there is no foreign exchange risk, but if it is in a different currency there is a foreign exchange risk. 

For transactions with emerging countries, it is essential to have CESCE insurance coverage for political and trade risks. BBVA grants the foreign importer up to 85% of the total amount to be financed directly. Moreover, for the remaining 15% not covered by CESCE, we can offer you financing through the Accompaniment Loans.

We place the most advantageous financial service related to Foreign Trade at your service: Medium- and long-term export forfaiting.

We take responsibility for buying, in cash and without any recourse against you, internationally accepted financial documents issued as a form of payment for your exporting (letters of credit, promissory notes, letters, guarantees, and in some cases, issued invoices).

As an exporter, you can provide financing for your importing customers without taking on debt yourself, while eliminating your commercial and political risk. You can also get paid in cash for your exported products at the time of transfer.
 

Benefits for your company (exporter):

Benefits for your company (exporter):

  • Obtain immediate liquidity.
  • Finance your client without consuming your banking risk limits.
  • Eliminate all risks of the transaction (commercial, political and exchange), as they are taken on without resource by BBVA.
  • Improve the structure of your balance sheet by transforming realizable into available assets.
  • Know your financial costs from the beginning in order to be able to allocate them to the transaction.
  • Simplify administrative tasks of accounts receivable for the transaction. Simplify the procedure.

We finance projects to be executed in emerging countries, where the main guarantees are the cash flow of the operation and project assets.
Financing for these projects requires a high degree of sophistication in terms of the financial products employed, which must be custom-designed for each project. For this reason, we have a highly-specialized team in Spain and in our international network (Europe, Asia and America) who will help and advise you at all times.
This type of financing is applied to concessions contracts known as BOT Project Finance. (Build Operate Transfer), B.L.T. ( Build Read Transfer), established via trusts or via the cession of collection rights. They entail political-administrative, construction, operative, demand and financial risks.

We finance investments made by Spanish companies for creation of companies, subsidiaries, or permanent establishments in emerging-market countries, or for their full or partial acquisition, purchase of shares for capital increases, or other asset contributions. 

Features:

Features:

  • The investing company must have a majority of Spanish capital.
  • The contracts, agreements, commitments and administrative concessions shall be subject to this financing, in which the sole or majority holder is a Spanish company.
  • Only new investments or increases in existing investments may be financed.
  • The beneficiary shall be the foreign company, the recipient of the investment. Loans are granted in any currency admitted to trading on the Madrid Foreign Exchange Market.
  • Financing will have CESCE coverage, for political risks.

   

 

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