If you offer your foreign customers leasing solutions for capital goods manufactured in the Netherlands, you are eligible for Atradius' Leasepolis.
The lease policy available to you depends on the structure of your leasing arrangement. Financial leases qualify for our comprehensive cover, while operational leases are eligible for our limited cover, which can be combined with expropriation risk protection where required.
(Comprehensive cover)
You lease Dutch capital assets to foreign clients. The intention is that the client (lessee) takes over ownership of the capital asset after payment of the final lease installment. In this case it is a financial lease and we offer comprehensive cover. It covers non-payment of all lease installments. We will indemnify you if your client is in default due directly to political or commercial reasons. Both versions therefore also cover the risk of expropriation of the capital asset. Indemnification occurs after the waiting period. This is usually three months, in a few cases longer. The lease policy with comprehensive cover has two versions:
Under the Comprehensive Cover Lease Policy for Financiers you will be indemnified for all unpaid lease instalments, even if you are not able to repossess and/or resell the leased asset. As soon as the leased asset has been repossessed and subsequently sold, the proceeds of the sale will be deducted from the claim for damages.
Under the Comprehensive Cover Lease Policy you will be indemnified for all unpaid lease instalments only if you are not able to repossess the leased asset. As soon as the leased asset has been repossessed, the current market value will be deducted from the claim for damages losses. Under this policy you will be responsible for selling the repossessed lease asset for at, at minimum, the established market value.
Restricted Cover and Expropriation Risk Cover
When you lease Dutch capital goods to clients abroad temporarily and the clients are not to assume ownership of the leased asset, this type of lease is known as an operational lease. For operational leases we offer restricted cover, which can be supplemented with expropriation risk cover if desired.
The Restricted Cover Lease Policy initially covers the first nine instalments due under the lease agreement. Each time an instalment is paid on time, the cover will be extended to include the next, previously uncovered instalment. The reason for this is that, as soon as a client is in default (for a longer period of time), the lease company is to repossess the leased asset and lease it to another client.
Under an operational lease contract you run more risks than only the risk of non-payment. Another risk is that you cannot repossess the leased asset - to which you have legal title - due to expropriation of the asset during the term of the lease or an export ban upon the lease’s expiry. Expropriation risk can be insured in combination with a Restricted Cover Lease Policy
It is also possible to take out a separate insurance policy for this risk alone.
Assessment procedure
There are two main assessment procedures for lease policy applications:
Maximum lease amount
The maximum amount of the insured lease depends on a number of factors including:
Please contact us for a more precise indication of the maximum covered lease size for your transaction.
Deductible/insured’s own risk
The percentage covered for regular transactions is usually between 90 and 98% percent of the insured loan. You therefore have a deductible of between 2 and 10%. Because of this deductible, you retain an interest in the successful completion of the lease. In the case of Asset Based Finance, the covered percentage is usually lower.
Duration and repayment schedules
The OECD has established rules for the maximum amount and duration of lease transactions. It has also established rules for repayment schedules for transactions insured by national export credit insurance agencies such as Atradius Dutch State Business. Annuity payments are permitted for leases.
Currency
We can insure leases denominated in a currency other than the euro. When we insure leases denominated in a foreign currency we will however pay any indemnity at the relevant exchange rate up to a maximum rate. The cap rate is usually very high and therefore most of your exchange rate risk will be covered.
(Foreign) leasing companies
Both Dutch and foreign leasing companies (lessors) can be insured with the Lease policy. Moreover, we insure both leasing companies that are part of the same group as the Dutch manufacturer, as well as external leasing companies.
Not only a client (lessee) but also a lease company (lessor) may require financing. The lease company will have purchased a capital good from a manufacturer and will usually wish to finance this purchase. The lease company’s main bank may grant it a loan for this purpose. If the lease company holds a Lease Policy from Atradius Dutch State Business, it can pledge to its bank any indemnities it may receive under the policy, as extra security for the loan. Indemnification under a Lease Policy is however subject to certain conditions, whereas the financing bank may require an unconditional guarantee. We can provide such a guarantee by issuing the bank our Direct Guarantee .
In the Netherlands, all forms of bribery are prohibited and punishable. The Dutch State and Atradius DSB do not under any circumstances wish to become involved in transactions where bribery has taken place. It is therefore important that we want to ensure as far as possible that ekv-covered transactions are free of bribery. We will therefore ask you to sign an anti-bribery declaration at the time we are going to issue a policy to you. You can view a sample of such a statement under downloads.
Atradius DSB and the state have jointly drafted an anti-bribery policy. You can download the document below.
