Buyer credit
An arrangement in which an exporter enters into a contract with a buyer, which is financed by means of a loan agreement between a bank in the exporter's country and a bank in the buyer's country. The export credit agency in the exporting country typically provides a guarantee to the lending bank. The exporter can draw on the loan as the work is done and accepted. The international buyer / bank makes loan repayments to the lending bank in accordance with an agreed repayment schedule commencing after the delivery of the goods or services. The key benefit of a buyer credit is the Isabella clause.