New guarantees offered by KUKE make it easier to obtain export contracts and secure their financing
Working capital guarantees, guarantees for repayment of liabilities towards suppliers and supply chain financing guarantees - KUKE offers a new set of instruments for exporters that will help them, among others, obtain additional funds from banks and factoring companies to finance their growth and overseas expansion.
KUKE introduces successive solutions as part of a new system of support for exporters, which enable them to obtain funds for development and also strengthen their credibility in relations with business partners. These are completely new and modified types of insurance guarantees granted with the support of the State Treasury. One of them is the payment guarantee, thanks to which exporters secure timely payment of liabilities towards their suppliers, regardless of whether the supplier is a domestic or foreign entity.
Another new instrument is the liabilities repayment guarantee for financing the supply chain of export production. It secures the repayment of exporters’ obligations to institutions financing invoices issued by the exporters’ suppliers.
So far, KUKE customers have eagerly used yet another type of guarantees - those relating to the repayment of short-term loans financing export contracts. However, their construction has been changed so that they can cover practically all of an exporter's current assets, and not only those used to finance a specific contract. An ideal solution for every exporter has been created: supporting the acquisition from banks of working capital loans so frequently used by companies on a daily basis, as well as enabling problem-less increase of the already existing limits.
The system of support for exporters, including payment guarantees, is available to entrepreneurs who can prove that in at least three of the last five years, revenues from foreign sales accounted on average for at least 20% of their total revenues. New exporters will have to demonstrate this share of exports in their sales in the first three years. Of course, it is also possible to obtain a guarantee to secure financing and supplies for a specific export contract.
KUKE assesses the credibility of the company and grants it a limit up to which all three types of guarantees can be issued. The limit is set for a period of one year, after which the fulfilment of the criteria will be verified. All three types of guarantees cover up to 80 per cent of the exporter's liabilities, and the repayment period for liabilities secured by these guarantees may not exceed 719 days.
Importantly, the procedures for obtaining guarantees have been simplified and all documentation is limited to a general or individual contract signed with the exporter.