Export Guarantee | Exporter and Bank as Guarantee Holders

301155

The guarantee against loss on production/loss on claim is a guarantee where both the exporter and bank are guarantee holders.

100 Items

50,00€

More info

General requirements:
The guarantee provides cover when the buyer cancels the contract or when the borrower fails to repay granted credits. You can choose either insurance against political events only or insurance against both political and commercial events.

Pledge:
The guarantee normally covers 95 per cent of amounts incurred during the period of production and 95 per cent of the claim under the loan agreement. This means your excess is 5 per cent in both guarantees. Higher excess will lower the premium for the guarantee.

The excess does not necessarily mean you will incur a definite loss in the event of a claim. Any recoveries by the institution are shared pro rata between you and them.

The institution will only indemnify you for non-payment of a conclusively established and due claim. 'Conclusively established' means your customer has not contested the claim. If the buyer cancels the contract, the institution indemnifies you as the exporter for your production costs.

There must be a legally binding written agreement between buyer and seller and between borrower and financier.

The premium reflects the risk and the structure of the transaction. The premium is expressed as a percentage of the guaranteed amount. The minimum premium is SEK 1,500.

The premium is normally paid in advance when the guarantee issues. This always applies with guarantee for loss on production. As lender you pay normally 15 per cent of the premium when the guarantee issues and the rest at the first disbursement under the loan. As a lender you can also opt to pay part of the premium in arrears, at the same time as interest payments under the guaranteed loan.

It does not cost anything to apply for a guarantee and receive an offer. The offer is valid for six months.

 

Data sheet

Seat of applicant Sweden
Investment location Zimbabwe
Business Phase Start Up
Capital category Guarantee
Turnover (Euro) 50 M+
Number of Employees 250 +

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