MBE export financing
- MISR BANK - EUROPE GMBH (MBE) has – in cooperation with the German-Arab Chamber of Industry and Commerce (GACIC), Cairo – developed a tailor-made product that is specially geared to the requirements of Egyptian exporters that do business with European countries.
- MBE is prepared to assist Egyptian exporters by purchasing receivables arising from trading activities whose debtors are European importers. Here, MBE buys insurance for the receivables that covers default by the importer due to its inability to pay and for certain importers the risk of “protracted default”. Non-payment of the receivable on grounds of deficient delivery (notice of defects), wrong delivery or late delivery is not covered.
- MBE export finance provides liquidity as soon as the goods have been verifiably shipped. Up to 80% of the invoice amount can be advanced as soon as the bank receives documentary evidence of shipment (bill of lading/airway bill).
- The administration of receivables by MBE reduces the volume of late payment receipts and thus improves the exporter’s cash flow. MBE export financing includes the purchase of receivables from various countries and enables efficient payment processes. At the same time, the existing business relationship between exporter and importer remains unaffected.
- The advantages for the exporter are plain to see: besides immediate liquidity, 80% reduction in counterparty risk and the benefit of differing interest rate levels, there is the possibility of being able to offer clients extended payment terms and thus stand out from competitors.