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Insuring export business as bank

Revolving Buyer Credit Cover

Product at a glance

Revolving buyer credit cover enables banks to insure their receivables under a loan agreement on the financing of a German exporter™s regular, short-term export transactions with a specific foreign buyer. The policy period of a Revolving Buyer Credit Guarantee is one year and it will be automatically extended unless notice of termination is given in due time, at the latest one month before the expiry.

Target group

  • German banks
  • Branch offices of foreign banks in Germany
  • Foreign banks (under certain conditions)

Payment terms of the covered transactions

Short-term (up to 12 months, in exceptional cases up to 24 months)

Insurable risks

Revolving buyer credit cover offers protection against payment default, particularly if

  • the borrower becomes insolvent
  • the borrower fails to make payment within one month after due date (protracted default)
  • adverse measures taken by foreign governments or warlike events
  • local currency amounts are not converted or transferred

Special features

Interest agreed in the loan agreement can be covered only up to a rate of 8 % annually.

The exporter need not submit a separate application in respect of the transactions to be included in the cover and is not granted his own separate Hermes Cover for them. However, specific arrangements ensure that the exporter is protected in a way comparable to supplier credit cover.

Limited in time until the end of 2011, cover for Bulgaria, Iceland, Latvia, Lithuania and Romania, in principle classified as marketable risks, is possible. Further information (German version only).

Premium

  • A certain percentage of the order value covered (interest excluded) as well as specific processing fees
  • For a detailed calculation there is an interactive premium calculator available.

Uninsured portion

5 % for all risks

For advice please contact

Ms Gertrud Jacobshagen
Phone: +49 (0) 40 / 88 34 - 91 62
Email: info(at)exportkreditgarantien.de

Downloads

Product information Revolving Buyer Credit Cover (217 KB)

Application Form Revolving Buyer Credit Cover (German version only) (57 KB)
Application Form Revolving Buyer Credit Cover (German version only) (173 KB)

Advice of Dispatch and a Disbursement Revolving Buyer Credit Cover (German version only) (12 KB)
Advice of Dispatch and a Disbursement Revolving Buyer Credit Cover (German version only) (166 KB)

Letter of Undertaking (German version only) (41 KB)
Letter of Undertaking (German version only) (89 KB)

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