Categories of our financial products |
Buyer Credit —— IBA’s bank supplying credit to the buyer or buyer’s bank |
Buyer Credit involves IBA signing a commercial agreement with the buyer while IBA’s bank signs a loan agreement with buyer or buyer’s bank (for lending to buyer). Maximum financing of contract sum is 85% of the amount of the supply contract with the 15% advance payment of made by the buyer.
The reimbursement period of the credit varies from 2 to 12 years, depending on the value of the transaction and the buyer’s country.
Repayment is made every six months and for the same amount, with the first payment due upon delivery or upon the provisional acceptance.
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Supplier Credit —— IBA giving the buyer credit |
IBA gives the buyer credit for example by using their own overdraft facility. A long period of credit might involve financial strain for IBA who takes the full burden for the claim. A solution for us here is refinancing through a bank.
In general, these involve semi-annual promissory notes or bills of exchange that we draw on the buyer and that are accepted by the buyer. These promissory notes or bills of exchange represent the expiry dates in principal and in interest for the payment periods given.
Medium– and long-term supplier credit is usually a fixed-rate credit that may be refinanced by a bank by discounting the irrevocable claim on the buyer.
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Documentary Credit —— Bank issuing to guarantee payment to IBA |
A credit instrument such as a Letter of Credit with the condition of payment being the presentation and attachment of certain documents such as bills of lading, insurances, certificate of origin, acceptance certificate, etc.
Documentary Credits are issued by a bank on behalf of the buyer and for the purpose of guaranteeing payment to IBA.
Pay Per Use —— The payment based on the level of usage |
This customized financing solution offered by IBA will enable the customers to install E-Beam or X-Ray irradiation equipment meeting their capacity requirements, available in real-time and keeping ahead of the competition.
After paying an initial lump sum for the equipment, the client pays periodically based on the level of usage, without having to outlay the whole price of the equipment upfront. This special financing package which also includes a full maintenance contract will help the clients to operate their irradiation facility optimally and to manage their cash more efficiently by spreading out payments over time.
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Discount Payment —— An allowance to encourage payment before NET date |
That is an allowance extended by IBA to encourage payment of an invoice on or before a stated date that is earlier than the NET (due) date and which is agreed to by the buyer and IBA .
Finexpo - Belgian advice committee to assure the financial support of the exportations of equipments |
Finexpo is an advice committee that has for objective to assure the financial support of the exportations of equipments and of Belgian services while reducing or while stabilizing the interest rate of the credits granted to finance Belgian exportations.
FINEXPO has access to four types of financial instruments. Next to the stabilization of the interest rate, there is three instruments to character confessionals; interest bonuses, interest bonuses and supplementary gift and the Ready ones of state to State. At the time of the examination of the projects, the Committee FINEXPO bases itself on a number of criteria, such as economical importance of the project for Belgium, the competition and budget repercussions.
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Forfeiting - Discount without recourse, forfeiter paying IBA a value less than the full amount of Document Credit |
Documentary Credits may be assigned to a Forfeiter who will pay IBA a value less than the full amount of the Documentary Credit. It is also called discount without recourse. In this case, the forfeiter commits himself not to exercise any recourse against IBA of the trade paper irrespective of whether payment is made by the debtor.
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Project Financing - Repayment of credits based on the cash flows generated by the project |
With project financing, the repayment of the credit is essentially based on the cash flows generated by the project. An ad hoc company (Special Purpose Company) will usually act as borrower to enable the realization of the project. This will help expenses and incomes of the project to be clearly isolated and analyzed.
The securities required by the credit providers practically exclusively relate to the incomes/assets of the project. Therefore, in case of non-repayment of the credit, possible recourse of the credit providers against the other parties involved in the project (shareholders, constructors, local authorities) can only have limited consequences. This is why project financing is also described as limited recourse financing.
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Build-Operate-Transfer (BOT) - Local authority giving a concession to a private company |
BOT is a special form of project financing with many variants such as BOOT (Build-Own-Operate-Transfer), BOO (Build-Own-Operate), BTO (Build-Transfer-Operate), etc
In the case of a BOT-operation, the local authority (a state, a public organization) gives a concession to a private company in order to create and develop a public service, at the latter's and for a certain period.
By leaving the realization of the project to a private company the authorities hope not to increase the public debt, even when they must still provide certain guarantees. In exchange for the work carried out (build) and the operations (operate), the private beneficiary of the concession also receives payment. At the end of the concession agreement the whole is transferred (transfer) to the local authority. Top |
