BfInsurance of a Short Term Export Supplier Credit Financed by a Bank against the Risk of Non Payment

The export supplier's credit financed by the bank is the credit provided by the exporter to the importer (foreign entity) in the form of deferral of payment for the delivered goods or services (export claim), bought from the exporter subsequently by the bank without possibility of retroactive sanction.

The maturity of short tail export supplier's credit (export claim) is shorter than 2 years.

The insured entity is bank against the risk that the importer does not pay properly the whole owing sum, i.e. the price for the delivered goods and services (export claim) in the due date. The insurance policy shall be signed also by the exporter acknowledging all his obligations following from the insurance policy, especially the obligation to perform properly the export contract.

The subject of insurance are export claims, i.e. claims of the insured towards the importer from export supplier's credit i.e. claims for payment of obligations following from export contract (payment for delivered goods and services) specified in the insurance policy. The documents proving the occurrence of insured export claim and proper performance of exporter's obligations from the export contract towards the importer, which will be accepted by the insured, are set in the insurance policy.

The insured event is a partial or complete non-payment of the insured export claim due to commercial or territorial reasons or their combination. Commercial reasons are: general importer's incapacity to pay his due obligations (financial insolvency) or rejection of payment without legal reason (unwillingness to pay). Among territorial reasons are e.g. administrative decisions or legislative measures of importer´s country hindering him to pay or limitation of conversion of payments due to political events in importer´s country, as well as other events in importer´s country, as war, revolutions, civil commotions and natural catastrophes.

The amount of premium depends on the export volume, agreed payment terms and conditions, way of payment reinsurance, evaluation of character and risk rating of importer, evaluation of risk exposure of the country or territories associated with the performance of export contract and on the deductible amount. The agreed amount of premium includes already the possible increase or decrease of risk insured and is unchangeable for the whole term of insurance duration.

The preliminary premium calculation is available through interactive calculator.

• The share of value of supplies with the origin in the Czech Republic in the export value – rules you can find here,
• trouble-free credit history1 of subjects2,
• The subject2 has existed and executed the activity being the subject of export minimally for 2 years before submitting the application for insurance of short- tail export supplier's credit financed by the bank against the risk of non-payment or its activity follows up his legal predecessor's activity, carried out minimally for 2 years before submitting the application for insurance of short-tail export supplier's credit financed by the bank.
• Credit insurance/claims in connection with the export of selected agricultural products listed in annex No. 1 of the Agreement on Agriculture, which is part of the Agreement Establishing the World Trade Organization (WTO), the maximum repayment term shall not exceed 18 months (from the starting point of credit to the end of the contractual date of the final payment).