Are you giving your foreign buyer payment deferrals through bills of exchange or promissory notes? And is your (home) bank unable to provide financing? Then you may be able to turn to the DTIF.
DTIF is a fund that helps Dutch exporters by providing financing when banks cannot provide credit. Set up by the Ministry of Foreign Affairs, it focuses on capital goods exports and investments abroad.
When exporting capital goods, your (home) bank may not be able to provide financing. This happens, for example, when you work with bills of exchange or promissory notes where the transaction amount is too small to be financed by a bank. Self-financing from your own capital is not a viable option for most companies, as it puts a heavy burden on your working capital.
If your customer fails to pay, you can fall back on export credit insurance. This insurance covers the payment risk and ensures that you do not suffer any financial loss. The premium for this insurance is calculated in the same way as regular export credit insurance.
In case of non-payment by the foreign buyer, DTIF pays indemnification. This compensates your losses and keeps your working capital intact. This allows you to export with confidence, without taking major financial risks.
How does it work and how do I apply for it?
The Dutch Trade & Investment Fund covers the payment risk. Under certain conditions, the Fund can also provide financing of up to €5 million to your buyer. The conclusion of such a financing contract is on a supplier credit basis and is accompanied by export credit insurance. Here Atradius can discount bills of exchange after delivery of the goods locally. This allows you to offer your buyer longer payment terms so that they may pay over several years. You can find out exactly how this works in the 'bills of exchange' flyer below. Atradius can also provide working capital.
This is subject to some additional conditions in addition to our regular conditions. Upon acceptance you will receive the same insurance documentation as under our regular Export Credit Insurance. You are therefore insured by the Dutch State. The premium is calculated in the same way as under the regular Export Credit Insurance.
What are the conditions?
To qualify for financing from the DTIF, a number of additional conditions must be met in addition to our regular conditions:
- it concerns a transaction of capital goods or contracting on a country that is NOT on the DGGF country list, but on which regular ekv coverage is possible.
- the fund is primarily intended for Dutch SMEs, or for larger companies if they can demonstrate that the export has a positive impact on Dutch SMEs.
- The fund is intended to be additional to the market. To test this additionality, we ask for a written rejection from your commercial financier (e.g. house bank) for the relevant discount.
DTIF also offers opportunities when Dutch SMEs invest, for example when expanding your business with a branch abroad. Then support in the form of loans and guarantees with a repayment obligation is possible. But also if you want to import from abroad and you cannot get the financing, DTIF offers possibilities to pre-finance your local supplier.
Both for investments and import transactions you can contact Invest International.
The amount of the premium is fixed at the beginning of the transaction. It depends, among other things, on the amount of the contract, the country of export and your customer's rating. But the payment term also plays a role.
Get more information and start your application by downloading the documents below
