At Disabled Entrpreneur we offer a wide range of services for Business Owners not only in the UK but Internationally. This may include our recommendations to Financial Institutions. We are showcasing SSH-Capital as a leader in Export Credit Financing in Europe and Saudi Arabia. If you have any questions please use the form below and someone from SSH-Capital will contact you.

SSH-Capital

Export Credit Financing.

SSH-Capital can provide substantially cheaper than normal financing both for large equipment purchases, and for entire projects. This means SSH-Capital could finance development of a Refinery or plant for a client, or could finance the purchase of equipment to upgrade an existing plant. Other examples are multiple hospital projects where the design and project management as well as the medical equipment and furniture etc were all ECA eligible.

The key considerations are in the following areas:

  • ECA financing can potentially cover up to in most cases 85% of the total project cost.
  • At least 50% of the project costs should go towards German or European ECA eligible goods or services (equipment / EPC etc).
  • Airbus is different!
  • A maximum within the budget that can be allocated to Local Costs is 23%. Local Costs are defined as: Local costs are expenses for deliveries and services from the ordering country, which are necessary for the execution of the export contract. (This would cover licenses, land payments, local construction etc)
  • The German Banks will cover up to 12% allocated to equipment / services from Third Party Countries (China / Korea / US / India etc)

The German Banks who will ultimately finance this project will be looking for some kind of Guarantor for the financing. This may be a corporate guarantee, but if the balance sheet is not strong enough then we could then look at a “Bank to Bank” scenario. In this instance the loan is not extended to the client, but in fact to the Bank of the client or entity.

If Riyadh bank would be open to such a scenario, we can have them speak directly with our Banks in Germany to see how this can be structured, and this is often is the quickest way to proceed. This is also the way to access to lowest Annual Interest Rates for financing. SSH-Capital already have a good working relationship with Riyadh Bank, so this is very much a possibility.

The easiest way to describe it is that there are 3 “pillars” to ECA Financing:

  • Client contribution –15%
  • German Export – this can be shared with other European exports, but it must be mostly German for Euler Hermes to take the lead, and to get the best interest rates. (AAA) Airbus is different!
  • Guarantor –This could be a Local bank that you have a strong relationship with acting in an On-Lending scenario where the German Bank assigns the loan to the Local Bank, who then administers it and passes it on to the client…. Alternately, a company can use their balance-sheet as a guarantee if it is strong enough.
  • Cost of the Bank Finance is around 1% approx.

Please note that while SSH-Capital mention Germany a great deal, as they have the most efficient ECA, SSH-Capital also work with many of the European ECA’s, so we may be able to provide ECA financing if at least 50% of the project spend is exports from a combination of these countries, but with Germany being the largest part of this consortium:

  • Finland – Finnerva
  • Sweden – EKN
  • Denmark – EKF
  • UK – UK Export Finance
  • Netherlands – Atradius
  • Belgium – Credendo
  • Germany – Euler Hermes
  • France – COFACE
  • France – Bpifrance
  • Switzerland – SERV
  • Austria – OeKB
  • Italy – SACE
  • Slovenia – SID Banka
  • Spain – CESCE

Service Costs / Application Costs

SSH-Capital Service Costs/Application Costs for this project will be between 78000 up to 125000€ per project, and these fees are payable in 2 tranches.

The first half will be payable at the contract signing stage. By this time you will have already been introduced to the German Bank, and will have identified the Equipment Supplier/Main Partner for the project. The second half of the payment will be due when the German Bank provides written confirmation of the financing application, and their intent to finance.

Success Fee

SSH charge a Success Fee which is only payable after the financing application has been completed. Our Success Fee is fixed at 0,90-1.25% of the financing raised, and as we always work in a transparent manner, our contract with you will be shared with both the financing Bank and also Euler Hermes, and we can also arrange for the Success Fee to be added to the financing in order to not impact the projects cashflow. This can then be dispersed by the financing bank.

 Brief Overview of the Next Steps

  • Once we receive from you a Fully Completed KYC containing all of the requested additional documentation including a LOI on Corporate Letterhead, and externally audited accounts etc, we will carry out our initial due diligence.
  • The documentation will then be shared with our relevant banks as well as with Euler Hermes for their “first glance” assessment.
  • If the client is interested in Bank to Bank financing, we will initiate direct communication between their nominated Bank and the relevant German Bank
  • Both Banks will discuss the “on-lending structure” and the clients bank will be able to confirm to them their acceptance of this structure and their comfort that all is transparent and “above board”.
  • At this point a contract is then signed between yourselves/project owner and SSH
  • At the contract signing stage the first 50% of the Service Costs are invoiced – so there are definitely no “upfront fees”. At this stage you hopefully already have your Bank involved, and everyone has full transparency of who will be providing the financing etc
  • We then work with you and your suppliers on their documentation such as Export Contracts etc
  • The formal agreements between the banks are put in place
  • The documents are presented to Euler Hermes for approval
  • The Banks issues a Letter Of Intent stating their intention of financing the project and the second 50% of the Service Costs are invoiced (this may happen earlier – it depends on the Bank)
  • The project is then presented to the Interministerial Committee for Export Credit Guarantees (IMA)” for final approval

Please use the form below to contact SSH-Capital.

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