Do you offer your clients deferred payment terms by allowing them to pay you by means of bills of exchange or promissory notes?
The Direct Guarantee is a no-cost supplement to the Exporter's Insurance (more information can be found here). It is an irrevocable guarantee from Atradius on behalf of the state to the advancing bank. It means that the bill of exchange or promissory note received from your buyer will actually be paid.
- Commercial risks: such as customer non-payment, bankruptcy, and payment delays.
- Political risks: including nationalization, war, embargoes, sanctions, or exchange rate restrictions. These risks can cause the customer to be unable to pay, even if there is no unwillingness to pay.
Conditions
A Direct Guarantee for a supplier credit is issued subject to the following conditions:
- The Direct Guarantee normally covers 95%-98% of the nominal value of the bills of exchange/promissory notes; under certain conditions this can be increased to 100%.
- As a rule the exporter must have completed the delivery of the capital goods and/or performed all the services as per the terms of the export contract. Under certain conditions we may be able to issue a Direct Guarantee prior to delivery of the goods/services.
- The bills of exchange or promissory notes must be payable in the Netherlands and have been approved by Atradius.
- Your bank must be prepared to discount the promissory notes or bills of exchange without recourse to you for the covered percentage stated in the insurance policy.
Bills of exchange discounting by Atradius DSB
If you receive bills of exchange or promissory notes from your client, and your bank cannot give you an advance on them, we can do so up to 5 million euros on a wide range of countries. This is subject to the same conditions as a Direct Guarantee.
We've created a document with a detailed explanation of the steps, terms and conditions, and calculation examples to help you navigate the foreign exchange financing process. Download the PDF below to discover everything you need to make your export transactions run smoothly.
If your bank provides a loan directly to your buyers to finance your exports, the bank requests a separate insurance policy from us. This product is called the finance policy. You can find more information about it here.
Premium
The Direct Guarantee is free of charge and an addition to the Exporters Insurance. For the Exporters Insurance, calculate your own premium here.
