Revolving Supplier Credit Cover
Insuring export business as exporter
Product at a glance
A Revolving Supplier Credit Cover 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.
German export firms
Payment terms of the covered transactions
- Short-term (up to 12 months, in exceptional cases up to 24 months)
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
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 the end of 2020, 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
- 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 (German version only)available.
- 5 % for political risks
- normally 15 % for commercial risks. For a limited period of time until the end of 2019 the uninsured portion can be reduced upon application to 5 % against the payment of a premium surcharge.
If required revolving supplier credit cover can be supplemented with
- Manufacturing risk cover
- Confiscation risk cover
- Contract bond cover
Country cover policy of more than 200 countries.