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Supplier credit for exports

Financing can be a decisive factor for closing an export deal. Find out what needs to be clarified and ensured before envisaging supplier credit in this type of situation.

06 Apr 2026
Sven Brandenberg
Team Head Structured Export Finance UBS

Contents:

Several stacked containers.

A brief guide to the most important points

Supplier credit is when the exporting company grants its foreign clients contractually agreed payment terms.

  • Supplier credit creates win-win situations for you and your clients.
  • Supplier credit allows exporting companies to benefit from greater liquidity security and improves their risk management.
  • For supplier credits to be covered by Swiss Export Risk Insurance (SERV), the exporting company must be headquartered in Switzerland.
  • Supplier credit is worthwhile for businesses with an export volume of CHF 0.5 to 10 million.

How does supplier credit work?

In the export business, supplier credit means that a company grants its foreign clients longer payment terms and, in doing so, effectively takes on the role of lender.

Although this type of agreement can serve as a starting point for a business deal, the financing must be examined carefully. This is because the exporting company has to forgo liquidity for the duration of the payment deferral if the payment is made using the company’s own funds. This may mean that the company ends up having to take out a loan itself to ensure its own liquidity. There is also a risk of default.

The best solution in this case is supplier credit. Combined with Swiss Export Risk Insurance (SERV) coverage, supplier credit can benefit both suppliers and their clients. It enables the exporting company to strike a balance between securing liquidity and expanding into new markets.

The infographic provides a brief overview of how supplier credit works – and lists the parties involved. They include a foreign client, an exporting company and a bank. The federal government is also concerned because supplier credit is covered by Swiss Export Risk Insurance (SERV). The diagram also gives details such as repayment terms and interest rates.

What are the benefits of supplier credit from UBS?

Supplier credit for international clients is a straightforward form of export financing. It is no coincidence that supplier credit has been a proven solution at UBS for decades, as it creates a win-win situation for both parties. The main benefits for you as the company selling the goods or services:

  • Liquidity management: Once delivery and commissioning are complete, you have immediate access to the purchase price agreed on with the buyer.
  • Risk management: SERV insures the main risks; you benefit from our experience, our global network of correspondent banks and our expertise – including our knowledge of the regulations and restrictions in individual countries.
  • Sales promotion: Thanks to supplier credit from UBS, you can offer your clients financing that has proven its worth in export transactions around the world. This can convince clients to choose you as their supplier. 

Everything from a single source: UBS is your reliable partner for international business. In addition to supplier credit and other services in the area of trade and export finance, we also offer hedging against currency risks  and solutions for international payments.

No more risk of currency losses

As soon as your company starts handling funds in foreign currencies, it makes sense to consider foreign currency management. Take the first step with our currency risk check: in just a few clicks, it will indicate whether currency hedging is worthwhile for you.

How is supplier credit processed by UBS?

There are three other parties involved alongside you and the buyer: SERV, UBS and possibly the client’s bank. Roles:

  • Supplier: You are the contractual partner of your clients, SERV and UBS. You negotiate the financing with your client and apply for insurance coverage through SERV. In addition, you are responsible for the production, delivery, installation and commissioning of the machines ordered.
  • Clientele: Clients order machines and repay the supplier credit via UBS.
  • SERV: SERV covers political, transfer, del credere, manufacturing and other risks.
  • UBS: As the financing bank, we purchase your receivable, including the SERV insurance coverage, and handle the collection of the supplier credit.
  • The client’s bank (depending on creditworthiness and the importing country): The bank covers the risk of default on the part of the client with a bank guarantee.

When is supplier credit the right solution?

Supplier credit is particularly suitable for export transactions with a value of CHF 0.5 million to 10 million. Managing supplier credit is straightforward, since the financing terms have already been set out in the supply contract.

As with all loans and international transactions, it can be an advantage if you have already established a relationship of trust with your clients and are able to assess their creditworthiness. If SERV considers the client’s creditworthiness to be insufficient, you may need a payment guarantee from the bank as additional security.

What requirements must be met to qualify for supplier credit?

The requirements include meeting the conditions specified by SERV and UBS and complying with the regulations of the country of import. The requirements in detail:

  • UBS: SERV coverage, banking relationship between the supplier and UBS.
  • Importing country: The imported goods must comply with the laws of the importing country. In addition, many countries require foreign currency transactions to be registered.

Requirements for SERV coverage

To insure your project with SERV, it must meet the following requirements:

  • The exporting company must be headquartered in Switzerland and entered in the commercial register.
  • The goods or services to be insured must have a Swiss value-added content of at least 20%.
  • The client’s place of business must be located abroad.
  • The transaction to be insured must be consistent with SERV’s business policy.

In general, SERV insures exports to all countries. There are no restrictions regarding the industry or the goods or services being exported, no minimum size requirements for the exporting company and no minimum contract value. You can find a detailed description of the requirements for taking out insurance on the SERV website.

What else should be considered regarding supplier credit?

It’s worth keeping the following two criteria in mind as you proceed with your project:

  • Timing: You should allow approximately two to three months for SERV, UBS and the client’s guarantor bank to reach a solution that all the parties can agree on.
  • Conditions applicable to certain countries: The more familiar you are with the specific legal requirements of the country to which you intend to export, the less likely you are to encounter unpleasant surprises. The principle that “goods remain the property of the seller until full payment has been made” applies practically everywhere, for instance.

Are there any alternatives to supplier credit in the export sector?

As an alternative to supplier credit, buyer credit is another proven tool in export financing. This is when UBS provides the buyer with a loan to purchase the exported goods, as the name suggests. This form of financing is primarily intended for goods valued at CHF 20 million or more, as the terms of the contract are negotiated on a case-by-case basis, entailing a considerable workload.

Do you have questions about the regulations and specific conditions applicable to a particular export market? Feel free to contact us; we would be happy to share our expertise and experience with you.

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Frequently asked questions about supplier credit

Conclusion: maintaining liquidity with supplier credit

For export volumes ranging from CHF 0.5 to 10 million, supplier credit is a proven tool that allows exporters to receive the sales price agreed on with the buyer immediately after delivery, even with extended payment terms. 

  • Exporters based in Switzerland can benefit from UBS supplier credit. 
  • Supplier credit, combined with Swiss Export Risk Insurance (SERV) coverage, also protects exporting companies against the risk of non-payment. 
  • The time taken to obtain supplier credit is dependent on the coordination between UBS, SERV, and the client’s guarantor bank. It typically ranges from two to three months.

As an alternative to supplier credit, buyer credit is a financing option that is mainly suitable for goods valued at CHF 20 million or more.

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