Hermes Cover click&cover BANK

Insuring export finance as a bank quite easily online? Our Hermes Cover click&cover BANK will be the ideal tool for that. Digital buyer credit cover enables German banks to insure buyer credits granted to finance straightforward export transactions quickly online without any hassle under a guarantee from the Federal Republic.

Worth knowing: You can find out whether this form of cover is suitable for your transaction in question by answering just five questions for the feasibility check. Besides, you will receive an indication as to the amount of the premium payable in the course of the online application process, that is before actually submitting an application for cover.

Target group

• German banks
• Branch offices of foreign banks in Germany
• Foreign banks (under certain conditions)

Payment terms of the covered transactions

• Short-term (up to 2 years)
• Medium-term (2 to 5 years)

Insurable risks

Hermes Cover click&cover BANK offers protection against payment default if

• the foreign borrower fails to make payment within 1 months (0 months in the case of subsequent instalments) after the due date (protracted default)

Special features

Online application form.

Hermes Cover click&cover BANK is primarily suited for standardised business transactions with, among others, the following parameters:

• Order value of the export transaction for which the buyer credit is granted: up to EUR 7 million
• Terms of payment: only selected regular repayment profiles
• Maximum credit period: 5 years as of the commencement of the deliveries/services
• Countries classified in country risk categories 1 – 5; for country risk categories 6 and 7 with contract values of a maximum of 3.5 million euros
• Permitted foreign content: up to a maximum of 49%
• Of which local costs: 11.5% of the total order value

In particular, the following standardised features help banks to do small ticket business:

• Fixed premium as a reliable basis for calculations
• No need for recalculations and premium refunds; the premium is only recalculated in the event of an increase of risk
• Repayment schedule fixed at an early date free of any changeover scenarios
• The starting point equals the date of the first delivery, thus eliminating the lead time
• The actual commencement of the delivery/provision of services or eligible date for disbursement, starting point, the commencement of the Federal Government’s liability and the due date for the payment of the premium are always all a single date
• Elimination of the clause postponing the commencement of liability for the premium tranche
• Elimination of clauses postponing the commencement of liability for invisibly included services and/or disbursements at the latest date prior to performance provided that this does not exceed a threshold for services of 10% of the order value
• Premium due for payment not until the actual commencement of the delivery/services (and the buyer credit becomes due for disbursement)
• Elimination of the joint and several liability in the case of combined cover: the bank is the sole party liable for the payment of the premium, meaning that the monitoring/coordination process with the exporter is no longer necessary

Supplementary information

The Bundesverband deutscher Banken e.V. (Association of German Banks, BdB) and the Bundesverband öffentlicher Banken Deutschlands e.V. (Association of German Public Banks, VÖB) jointly commissioned a legal opinion on the effectiveness and enforceability of Buyer Credit Guarantees for the purposes of Article 194(1) first subparagraph of the Regulation (EU) No 575/2013 (Capital Requirements Regulation (CRR)). The legal opinion is made available under certain circumstances and upon request to institutes governed by the CRR. Such requests should be made to the BdB or VÖB through the respective national banking association to which the institute in question belongs.

Premium

• Depending on the product parameters chosen, you will be shown the premium amount as “all-in premium” in the course of the online application process.

Uninsured portion

• 5% for all risks

You can apply quite easily for this product online in the  myAGA customer portal. Please submit your online application there in order to apply for cover for your export transaction under Hermes Cover click&cover BANK. For this purpose please register once and comfortably with just a few steps with our  myAGA customer portal. If you already use myAGA, you can log on directly with your access data.

If you need assistance with the application or if you have any questions regarding the suitable product for you, please contact our business consultants.

Our experts will be pleased to answer any questions regarding Hermes Cover click&cover BANK and will guide you step by step through the application process if desired.