This is how it works

The Federal Republic of Germany has mandated Euler Hermes Aktiengesellschaft (Euler Hermes) with the management of the export credit guarantee scheme – also known as Hermes Cover.

The mandatary prepares the application of your exporter or the lending bank for a decision on cover.

This means your German business partner should get in touch with Euler Hermes as early as possible - i.e. while negotiations are still going on and in any case before signing the export contract.

Your German business partner will be able to arrange the cover of transactions on short credit term

When raw materials, semi-finished goods, components, consumer goods and spare parts are supplied, only credit periods of up to six months are normally accepted for the granting of Hermes Cover. For high-value components and consumer durables credit periods of up to 12 months, in exceptional cases of up to two years, may be acceptable. For recurring supplies at short payment terms the export credit guarantee scheme offers cost-effective and straightforward Wholeturnover Policies and revolving guarantees to the German exporters. But it goes without saying that single transactions can also be covered.However, Hermes Cover for transactions at short credit terms is available to German exporters only if your company is domiciled outside the EU or the OECD core countries. Cover of export business at short credit terms in EU or OECD core countries is regarded as marketable because private insurance companies offer sufficient insurance facilities. Therefore the Federal Government is not allowed to offer cover for this type of business

or transactions on medium and long credit terms

Export transactions with an agreed credit term of up to five years are classified as medium-term business. Longterm credits may have repayment terms of up to 12 years - in exceptional cases up to 18 years. For these types of business a wide range of customized single transaction guarantees is available.

You will learn more about the two most important forms of cover - supplier credit cover and buyer credit cover

If your business partner grants you a payment term with a due date, he can insure this credit with a SUPPLIER CREDIT GUARANTEE. The business transaction will become more attractive for you if the German exporter can transfer his risk of bad debt losses and grant you a LONGER PERIOD FOR PAYMENT. In some cases the German exporter may have no alternative but to do this in order to obtain funding from his bank for himself. However, for the granting of a Supplier Credit Guarantee, it is important that you assist in the process by making ALL REQUIRED DOCUMENTS AVAILABLE to our partner.

Export transactions at medium and long credit terms are frequently financed through a bank by means of a BUYER CREDIT. Normally, your German business partner will be able to arrange such a credit - do not hesitate to ask him! The German bank (but also certain foreign banks as well as all German subsidiaries of foreign banks) will grant you or a bank in your country a credit with which the purchase price you owe to the German supplier will be paid immediately upon delivery of the goods or when the rendering of services commences. Thus the pressure on the German exporter’s balance sheet will be relieved straightaway - hence the buyer credit will always have a positive effect on his liquidity. This is the key advantage for the German exporter because, in contrast to a supplier credit where he grants you a period for payment, he need not refinance himself. You may frequently benefit from longer credit repayment terms when a bank is involved.BUYER CREDIT cover protects against a possible non-payment of your loan for commercial or political reasons - for example insolvency or war-like events in your country. Frequently, banks will only grant a buyer credit if the Federal Government provides a corresponding guarantee. Thus the commitment for cover may be decisive for your import transaction to materialize. However, buyer credit cover will require a vetting of the transaction. For that both the current situation in your country and your company’s creditworthiness are material. In order to ensure a swift and smooth investigation, you should make any information available at the earliest possible.

As a rule a down-payment amounting to 15 % of the contract value and payment of the remaining 85 % in at least semi-annual instalments are required for transactions with credit terms of more than one year.

The German industry landscape offers the broadest range of sectors in the world!

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This is your role in getting "Hermes Cover"

After you have asked your German business partner to get in contact with Euler Hermes in order to apply for Hermes Cover there is just one more thing to do.

In order to be able to judge whether you as importer of goods or services will be able to meet your contractual obligations, our experts will assess your creditworthiness. 

Provide us the information required

  • The assessment focuses on your BALANCE SHEET, your ASSETS, your FINANCIAL POSITION and your PROFITS during the past three years. 

The more detailed the information you provide is, the swifter a decision can be taken.

In addition to the assessment of your own creditworthiness, we consider the current situation in your country: If you want to learn more about our current cover policy for your country click here.

We understand your needs…

Besides pure product and services “Made in Germany” you are looking for:

Efficient and reliable processes

  • Negotiations and the drafting of contracts can be tough and challenging. Additional bureaucracy and unnecessary paperwork are not helpful.

Sustainable trust in our business relation

  • Good processes rely on a solid confidence base and long-term relations.

Financing on good conditions

  • For most import businesses financing by a bank is requested. But how to achieve the best conditions?

Attractive price level

  • Not only the quality of a product but also its price are essential. There are ways to strengthen your position.


  • All these issues determine your competitive position

We support you to meet all your requirements!

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For sure there are products and services “Made in Germany” that fit your business interests.

…and provide you with best solutions


  • Our experience in export business lasts for more than 60 years, building up a large knowledge base and a broad network in fitting “Made in Germany” to your business interests.


  • We are aware of the fact that no business is comparable to another one. Therefore we offer a wide range of export guarantee products provided by the Federal Republic of Germany which will help you and the German exporter to arrange optimized solutions and realize best conditions.


  • We support you and your German business partner where necessary throughout the entire process of the transaction. 

Financing Conditions

  • Your company will benefit from the cover against losses for German exporters and your financing banks to buy “Made in Germany”. You will receive medium to long-term financing conditions at highly competitive conditions.

Who we are and where to find us

Euler Hermes Aktiengesellschaft manages the official export credit guarantee scheme on behalf and for account of the Federal Government since 1949 with a combined expertise of around 400 employees.

In the year 2015 we promoted international projects with an accumulated amount of EUR 25.8 bn.

In 2015 readers and experts of the Trade and Forfaiting Review (TFR) have voted Hermes Cover as Best Export Credit Agency.

Exporters and export financer of TXF, Trade and Export Finance, have voted the Export Credit Guarantees as the winner of the Exporters' Choice Award 2016.


Further Questions?

Our experts in Germany are happy to support you with knowledge, advice and their vast experience.

For information do not hesitate to contact your nearest German Chamber of commerce abroad (AHK). Click here for details!



You will find more detailed information in our general brochures for foreign buyers: