Export safely with ECA

IT Cluster IT Cluster

Entering the international market is a necessary step for the development of any business, but it always involves risks for exporting companies. This is especially true for Ukrainian businesses, which have to conduct all communications in a foreign language.

That is why Kharkiv IT Cluster held a webinar for members on «How to protect the export of IT services? Opportunities with ECA», which took place on March 27.

Speakers of the event: Ruslan Gashev, Acting Chairman of the Board of ECA, and Maryna Dzhulai, Deputy Head of Sales at ECA. The meeting was also attended by representatives of ECA’s partner banks.

Kharkiv IT Cluster members who attended the webinar learned how Ukrainian businesses can protect themselves when entering the international market, as ECA helps Ukrainian companies solve key issues:

🔹the issue of safe entry into new markets, when the exporter does not have confidence and information about the counterparty;
🔹 availability of financing, as IT businesses usually do not have enough collateral to attract credit.

Issues of safe entry into new markets

Ukrainian companies planning to enter new markets can protect themselves by insuring foreign economic contracts.

«This ECA product can be most useful for the Ukrainian IT business, as it was created specifically for cases when an exporter is not sure about its counterparty or that it will not pay on the agreed deferral terms,» Maryna Dzhulai notes.

❗️Requirements for the parties to a foreign economic contract:


🔹 must be a resident of Ukraine;
🔹 has no pending bankruptcy proceedings;
🔹 exports goods of Ukrainian origin.


🔹 the country of origin of the importer is not under sanctions;
🔹 should not be on the FATF list.

Availability of financing

Today, ECA has fruitful cooperation with 5 partner banks that insure export credits through two insurance programs:

💼 portfolio insurance (maximum insurance amount per borrower — UAH 20 million, loan term — 1 year, insurance rate 0.6% of the insurance amount):
💼 individual insurance (insurance up to UAH 170 million, loan term > 1 year, insurance rate on average 1.5%-3% depending on the client’s financial model and required investments).

❗️ The main requirement for an exporter is that the loan provided by the bank should be aimed at supporting exports, i.e. fulfilling a foreign economic agreement.

Representatives of banking institutions explained step-by-step how the lending process works, what advantages exporters have, and showed their own cases.

Exporters have the following advantages in cooperation with the ECA:

      1. Facilitating access to new markets, allowing you to work safely with new counterparties.
      2. Protection of business from non-payment if the importer fails to fulfill its obligations under the contract.
      3. The ability to sell goods, provide services and works on a deferred basis.
      4. Possibility to verify the importer as part of the review of the Application for Insurance.
      5. No need for additional collateral.

After the main part of the webinar, all participants received practical advice from the speakers and answers to their questions during the Q&A session.

A popular question at the meeting was:

«Can an LLC with a group of sole proprietors qualify for ECA risk insurance?»

Yes, insurance for a group of sole proprietors is possible, but there are key requirements for insurance and lending. A sole proprietorship must:

🔹 provide a declaration for the last year of work and evidence of work for more than one year;
🔹 have a foreign economic contract available;
🔹 pass the check to see if the importer and exporter are related.

If all the requirements are met, the exporter needs to obtain financial statements from the counterparty, and constituent and registration documents must be submitted together with the applications (the insurance application contains a list of required documents).

It takes about 7 business days to analyze the package of documents, but before that, ECA calculates the tariff. If it suits the exporter, the cooperation continues.

📌 Details:

ℹ️ ECA is a state-owned customer-oriented company whose main goal is to stimulate large-scale expansion of exports of goods, works and services of Ukrainian origin through insurance.

ECA does not lend! ECA insures exporters against risks and enables Ukrainian exporters to expand their geography.

The recording of the event will be available to all cluster members in closed community channels.

Join Kharkiv IT Cluster not to miss the next event and always be aware of current events in the IT world!

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