Professionals see significant opportunities in the financing of export activities of companies, says István Fetter, the Head of Trade Finance at CIB Bank Hungary. He also explains how his bank is able to provide prefential loans for different firms.
What do you expect in relation to the export financing of enterprises, what
opportunities are worth highlighting?
István Fetter: Of fundamental importance are loans provided by CIB Bank and refinanced by EXIM. These are fixed-rate EUR and USD loans that are one of the best-priced
on the market, available to companies that export goods directly, are suppliers
to the exporter or plan to appear on the export markets in the future. This
financing can be a real alternative for companies that have several years of credible
operating history; are well anchored in domestic and export markets; and there
is an – as much as possible – stable demand for the products or services that
Taking into account our country's export-oriented nature, and the improving
domestic and international outlook the after the crisis, we are optimistic and
we expect that we can establish long-term cooperation with many of our current
and future partners or further strengthen the existing relationship. CIB Bank
Hungary, which is a market leader in corporate lending, pays special attention –
in addition to general corporate financing – to providing solutions, which can also
be used in the fields of export and trade financing that require specific
expertise, for companies with realistic business models sustainable for a long term.
What can your customers expect? In what way should they take advantage
of this opportunity?
I. F.: We provide tangible help for companies that are already present in the
export markets, but they see points of development in relation to banking
solutions such as the loan – with fixed rate throughout its term – provided by
CIB Bank. By making use of such financing options, our customers may obtain a
competitive advantage in the market. In addition, there will be focus on companies,
which have not yet received funding in the right way, or to the right degree, and
thus, they could not achieve their goals.
CIB Bank is a partner in working together with the client to develop the
most appropriate, tailored financial package that takes into account the
industry, market and ownership conditions and expectations. In addition to financing
by loans, the CIB Group could create further added value for a company in the
area of factoring, leasing, documentary operations or cash management services.
What should companies consider before asking for such loans?
I. F.: Prior to the
establishment of a new long-term partnership, CIB Bank always gets to know each
client thoroughly. This is a mutual process where the enterprise can also get a
real idea of what and how we can help. A single-gate service model is used,
that is, each company has a personal Account Manager. In addition to creating and
assuring a long-term partnership of trust, they also pay special attention to involving
in the process – as much as needed – banking experts who are the most prepared in
the given topics. It well suits this model that our bank has established a trade
finance knowledge center with an extensive international network of contacts. This
center is able – in closed, tightly monitored construction – to even finance companies
that would not get funding in the framework of classical corporate financing.