Product overview for financial institutions

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.

Protection against payment default arising from recurring export financing – one buyer, one country

• Up to 12 month credit period, in exceptional cases up to 24 months

Shopping line cover aims at providing access to the procurement programmes of large foreign customers with good credit ratings. To achieve this, it offers banks the possibility to obtain cover for a credit facility granted to be drawn on for this purpose. It may be used for export transactions which have been executed and paid for in full (reimbursement procedure). For the utilisation these transactions of various German exporters are pooled in one or several tranches each with a uniform repayment profile. The respective loan receivables are covered by the Federal Government under shopping line cover, a buyer credit guarantee which is modified by Special Terms and Conditions for this type of business.

Protection against default of loan receivables under a credit line from several German exporters (tranches)

• Short term: up to 24 month credit period
• Middle-/long term: 2 years and longer

With Framework Credit Cover banks can insure their receivables arising from individual loans granted under a general loan agreement (credit line) to finance German export transactions.

Protection against payment default arising from credit facilities granted to be drawn

• Middle-/long term: 2 years and longer

The Forfaiting Guarantee makes it easier for the exporter to refinance its small-ticket transactions covered under an Export Credit Guarantee of the Federal Government. It gives the exporter access to more liquidity and reinforces its position in international competition.

Protection of receivables resulting from cross-border deliveries having a contract value of up to 10 million euros (or the euro equivalent).

·         Short-term (up to two years)

·         Medium/long-term (two years or longer)

Learn more about how you can expand your financial leeway for your foreign business on our product page:

The Counter-guarantee complements a Contract Bond Guarantee and thus cannot be used independently. It enables German exporters to ease the pressure on their credit lines. Especially small and medium-sized companies can enhance their liquidity with it. 

Buyer credit cover against credit confirmation risks is not an independent form of cover. For this a Buyer Credit Guarantee is amended by Special Conditions. 

Protection of exporters against recourse claims by financing institutions.

A Covered Bond Guarantee gives banks financing export transactions more flexibility when refinancing the export credits they granted in their own covered bond business (German covered bond; "Pfandbrief"). 

Protection against the withdrawal of covered bonds in the event of insolvency/insolvency of the bond institution outside Europe e.g. by a creditor of the bank.