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| Export financing is a key competitive parameter for an exporter and increases the possibilities of signing a contract. There are several advantages for both importers and exporters in turning over the task of financing to Danske Bank:
The Exporter
- receives cash payment upon shipment or commissioning
- does not tie up assets
- avoids credit, currency and interest-rate risks in the settlement period
- does not need to use administrative resources to collect the debt
The Importer
- can use long-term financing to match expected revenues with expenditures, making cash flow more efficient
- obtains financing that is less expensive than local financing, which is also usually subject to restrictions
- obtains additional savings on financing because exporters can use export credit programmes that make financing available at favourable prices
- can obtain fixed-rate financing and be certain of the size of future payments
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