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Insuring export business as exporter

Revolving Supplier Credit Cover

Brief description

A Revolving Supplier Credit Guarantee covers short-term trade receivables due to a German exporter as a result of supplies of goods and/or services to a foreign buyer on a continuous basis. The policy period is one year and it will be automatically extended if notice of termination is not given in due time, at latest one month before the expiry.

Here you will find some practical examples.

Target group

German export firms

Payment terms of the covered transactions

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

Insurable risks

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

  • the foreign buyer becomes insolvent
  • the buyer fails to make payment within 6 months after due date (protracted default)
  • adverse measures are taken by foreign governments or warlike events arise
  • local currency amounts are not converted or transferred
  • goods are confiscated due to political circumstances
  • contract performance becomes impossible due to political circumstances

Special features

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
  • In the first contract year a so-called advance premium is charged which is later deducted from the premium amounts due for the individual transactions.
  • For a detailed calculation there is an interactive premium calculator available.

Uninsured portion

  • 5 % for political risks
  • normally 15 % for commercial risks. For a limited period of time until the end of 2013 the uninsured portion can be reduced upon application to 5 % against the payment of a premium surcharge.

Supplementary cover

If required revolving supplier credit cover can be supplemented with

For advice please contact

  • Mr Holger Ehrich, phone: +49 (0) 40 / 88 34 - 90 26
  • Mr Matthias Holst, phone: +49 (0) 40 / 88 34 - 90 54
  • Mr Detlev Wriede, phone: +49 (0) 40 / 88 34 - 90 25
  • Email: info(at)exportkreditgarantien.de

Downloads

Product Information Revolving Supplier Credit Cover (214 KB)

Revolving - Advice of turnover (German version only) (78 KB)
Revolving - Advice of turnover (German version only) (122 KB)

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