Our solution - bonds
It is common for an overseas buyer to require you, as their supplier, to provide one or more bonds (or guarantees) as part of an export contract.
Refrigeration Engineering is a company that we supported with bonds to enable them to secure an export contract.
Refrigeration Engineering, a process cooling and gas compression company, won a contract with Korean company GS Engineering & Construction Corporation to supply a refrigerated peroxide storage unit for a polyethylene manufacturer in Saudi Arabia.
GS sought advance payment bonds to secure progress payments for the equipment, so Refrigeration Engineering came to us for help.
We provided Refrigeration Engineering’s bank with three advance payment bonds, as well as a performance and warranty bond, to support the deal.
These bonds freed up precious working capital, which allowed Refrigeration Engineering to finance this export contract and its growing pipeline of orders.
The contract with GS was important, as Refrigeration Engineering felt it could lead to follow-up orders and further export growth.
Have you secured your first export contract and need finance support?
Find out how Efic can help first time exporters.