Leasing Cover

Product at a glance

With leasing cover a German lessor (manufacturer/exporter or leasing company) protects himself against the loss of the amounts owing from a foreign lessee under a cross-border lease.

Target group

German lessors (manufacturers/exporters or leasing companies)

Payment terms of the covered transactions

• Short-term (up to 2 years)
• Medium/long-term (2 years and longer)

Insurable risks

Leasing cover offers protection against payment default, particularly if

• the lessee becomes insolvent
• the lessee fails to make payment within either one or six months after due date depending on the type of leasing cover (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

Premium

• Single premium calculated as a percentage of the covered contract amount (excluding interest) as well as specific processing fees
• For a detailed calculation there is an  interactive premium calculator (German version only) available.

Uninsured portion

• Standard leasing cover 
  • 5 % for political risks
  • normally 15 % for commercial risks
• Leasing cover at enhanced conditions (preconditions among others: leasing of capital goods, qualified leasing company acting between the manufacturer and the lessee, assignment typical for leasing transactions has been agreed) 5 % for all risks

Supplementary cover

If required, leasing cover can be supplemented with

• Manufacturing risk cover
• Confiscation risk cover
• Contract bond cover
• Counter-guarantee

This product can be applied for online.

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