Insuring export business as bank
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 Cover 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.
- 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)
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
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.
As a rule, cover facilities are available for all countries, with the exception of exports on credit terms of up to two years to EU and core OECD member states (i.e. EU member states, Australia, Canada, Iceland Japan, New Zealand, Norway, Switzerland, United Kingdom and USA); for a limited period of time until 31.12.2021, Export Credit Guarantees of the Federal Republic of Germany are also available for these normally marketable countries (German version). Additional information.
- 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 (German version only)available.
5 % for all risks
Country cover policy of more than 200 countries.