We can provide our solutions to a New Zealand firm that is providing goods or services that are integral to the delivery of exports.
Our support is available where private trade credit insurance, or bank trade finance, is unavailable or insufficient to allow you, as an integral supplier, to deliver your goods, or services in support of exports. Examples of our support include:
Short-term trade credit insurance: covering the risk of your buyer (e.g. exporting firm) not paying for your goods or services (for up to 365 days). Click here for a supply chain short term trade credit scenario.
Export credit guarantee: covering a medium-long term loan (e.g. over 1 year) for capital goods and related services that are integral to an exporter’s supply chain. Click here for a supply chain export credit guarantee scenario.
Contract bond guarantee: guaranteeing your bank’s issuance of a contract bond in respect to an export supply chain project. Click here for a supply chain contract bond guarantee scenario.
Loan guarantee: guaranteeing your bank to provide additional lending required to fund the delivery of your export supply chain contract. Click here for a supply chain loan guarantee example.
How do I show that I am integral to an export supply chain?
Our export supply chain support is provided to ensure a New Zealand exporter is able to deliver a specific export contract, or multiple future exports.
A New Zealand supplier must demonstrate that their goods or services either:
- form an integral component of exported goods or services; or
- are integral to an exporter being able to manufacture or perform its exports.
Please note we cannot support supply contracts that involve general business support services.
NZEC’s assessment of this integral test will be on a case by case basis and include the following considerations:
- How are the domestic goods or services integral to the delivery of exports and/or the performance of a specific export contract?
- What are the implications for the exporter if the domestic supplier’s goods or services are not provided?
- How far removed is the domestic supplier’s contract from the ultimate export?
To assist with evidencing this “integral test”, you may obtain a written statement from your buyer (Exporter) which:
- confirms that your firm is a preferred supplier; and
- describes how your goods or services will form an integral component of exported goods or services, or are integral to an Exporter being able to manufacture or perform its exports.
How do I apply?
NZEC’s standard credit assessment standards and processes apply for each NZEC solution. To apply or if you wish to discuss further, please contact one of our Business Originators.