How an ECA-backed facility is actually built
An export credit agency does not usually lend to you. It insures or guarantees a commercial bank's loan against political and commercial risk, which allows that bank to lend at longer tenor and lower margin than it otherwise could. The result — a buyer credit — is often the cheapest long-term debt available for imported capital equipment.
| Element | Typical position |
|---|---|
| Cover level | 85% of eligible export contract value |
| Down payment | 15%, payable by the buyer from equity or separate debt |
| Local costs | Often up to 30% of export contract value, subject to rules |
| Tenor | 5–12 years after commissioning, semi-annual repayment |
| Grace period | Construction period plus 6 months, commonly 18–30 months |
| Premium | One-off risk premium, financeable, based on country and tenor |
| Security | Sovereign, bank or corporate guarantee depending on ticket |
Eligibility: country of origin decides everything
ECA support follows the exporter's nationality. Buying the same machine from a German supplier rather than a non-covered origin can convert a 4-year commercial loan into a 10-year covered facility. This is precisely why financing must be scoped inside the RFQ: the origin decision is a financing decision disguised as a technical one.
- Euler Hermes (Germany), SACE (Italy), UKEF (UK), EKF (Denmark), Atradius DSB (Netherlands)
- Bpifrance Assurance Export (France), Finnvera (Finland), EKN (Sweden), OeKB (Austria)
- K-Sure and KEXIM (Korea), NEXI and JBIC (Japan), EDC (Canada), EXIM (US)
- Sinosure (China), covering Chinese-origin equipment on distinct terms
Timeline and documentation
Documents to prepare before approaching a bank
- Signed or near-final commercial contract with the exporter
- Feasibility study with market, technical and financial sections
- Three years of audited financial statements for the borrower and sponsor
- Financial model showing DSCR through the full loan tenor
- Environmental and social impact assessment, scaled to project category
- Corporate documents, ownership structure and KYC pack
- Evidence of the 15% down payment funding source
- Insurance programme outline for construction and operation
Realistic timeline: 2–4 weeks for indicative terms, 6–12 weeks for credit approval once documentation is complete, 4–8 weeks for legal documentation and conditions precedent. Projects that slip usually do so on E&S documentation and audited accounts, not on the credit decision itself.
Questions & answers
Frequently asked questions
Can ECA cover be used for a project in any country?
Most ECAs cover a wide range of destinations but apply country limits and pricing based on OECD risk classification. Some markets are off-cover entirely, and others require sovereign or bank guarantees.
Does the 15% down payment have to be cash?
It must be funded outside the covered facility, but it can come from equity, a parallel commercial loan, vendor terms or a development bank tranche. Lenders will ask to see the source.
What is the all-in cost of ECA financing?
Typically a floating or fixed base rate plus a bank margin of roughly 1.0–2.5%, plus a one-off premium that is usually financed into the loan. It is generally the lowest long-term cost of debt available for imported equipment.
Can Global B2B Group introduce us to ECA-backed lenders?
Yes, independently and free for buyers. We prepare the package and introduce banks active in your country and sector; all credit decisions rest with the institutions.
Industrial financing
Financing routes for financing & investment
Financing is scoped alongside the RFQ, not after supplier selection — the funding route changes the optimal supplier, currency, incoterms and delivery schedule. Global B2B Group never lends, never takes a success fee from buyers and is not tied to any institution. Below are the nine routes we actively structure against.
Export Credit Agencies
State-backed cover (Euler Hermes, SACE, EKF, UKEF, Atradius, K-Sure) on equipment exported from the supplier's country, usually combined with a commercial bank loan.
- Tenor
- 5 – 12 years
- Ticket
- $2M – $250M
Best for: Imported production lines and turnkey plants from EU, UK, Korea or Japan
- Eligible country content
- Down payment 15%
- Bankable feasibility study
Development Banks & DFIs
IFC, EBRD, AfDB, ADB, IDB, FMO, Proparco and bilateral development windows funding industrial capex with concessional pricing and long grace periods.
- Tenor
- 7 – 15 years
- Ticket
- $5M – $200M
Best for: Food security, cold chain, energy efficiency and job-creating projects in emerging markets
- ESG / E&S compliance
- Audited financials
- Development impact case
Commercial Lending
Bank term debt and capex facilities secured against project cash flow, equipment and corporate balance sheet, in local or hard currency.
- Tenor
- 3 – 8 years
- Ticket
- $500K – $80M
Best for: Established operators expanding proven capacity
- DSCR ≥ 1.3x
- Security package
- Sponsor equity 25–35%
Equipment Leasing
Operating and finance leases that keep machinery off the balance sheet, preserve working capital and align payments with production ramp-up.
- Tenor
- 2 – 7 years
- Ticket
- $100K – $25M
Best for: Single machines, packaging lines, handling fleets and phased upgrades
- Asset resale value
- Insurance
- Deposit 10–20%
Vendor Financing
Supplier-supported deferred payment and instalment structures negotiated inside the RFQ, before supplier selection narrows your leverage.
- Tenor
- 1 – 5 years
- Ticket
- $250K – $30M
Best for: Buyers who want a single contractual counterparty for supply and payment terms
- Supplier credit appetite
- Bank guarantee or LC
- Milestone schedule
Project Finance
Limited-recourse SPV structures where the facility's own cash flow repays the debt, with independent technical and market due diligence.
- Tenor
- 8 – 18 years
- Ticket
- $20M – $500M
Best for: Greenfield plants, integrated processing complexes and utility-scale infrastructure
- Offtake agreements
- EPC contract
- Independent engineer report
Private Equity
Growth and buy-out capital from industrial and agri-focused funds, typically alongside a debt tranche to lower the blended cost of capital.
- Tenor
- 4 – 7 year hold
- Ticket
- $5M – $150M
Best for: Platform build-outs, consolidation and cross-border expansion
- Governance standards
- Growth thesis
- Exit path
Investment Partners
Strategic co-investors, family offices and regional sponsors who bring local licensing, land, offtake or distribution alongside capital.
- Tenor
- Negotiated
- Ticket
- $1M – $50M
Best for: Projects needing local partnership or market access as much as funding
- Shareholder agreement
- Clear capital structure
- Aligned exit
Government Programmes
Industrial localisation incentives, capex grants, interest subsidies, free-zone benefits and agri-processing schemes that reduce effective project cost.
- Tenor
- Programme specific
- Ticket
- Grants 5% – 40% of capex
Best for: Projects in priority sectors, special economic zones or import-substitution plans
- Local registration
- Job creation targets
- Application windows
How financing is structured
1. Scope & budget
Technical scope and realistic capex band are fixed first — lenders price the project, not the wish list.
2. Route selection
We map which of the nine routes actually fit your country, sector, ticket size and sponsor profile.
3. Bankable package
Feasibility, offtake, DSCR model and equipment quotations assembled into a lender-ready file.
4. Introductions
Independent introductions to ECAs, DFIs, banks, lessors and equity partners — no exclusivity, no success fee to buyers.
Get a funding route assessment
Human-led, supplier-neutral and 100% free for buyers. We return the routes that realistically fit your project, with indicative tenors, equity requirements and documentation checklists.
Next steps
Put this into practice
Request machinery quotes
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