Working capital insurance

With working capital insurance, SERV insures the repayment claims of a bank against the exporter or his subcontractors if the export transaction is covered by credit insurance.

SERV must pay indemnification if the exporter or his sub-contractor fails to pay back the credit in due time. SERV thus assumes the risk of the insolvency of the exporter or sub-contractor during the production phase.

By granting a working capital loan, the bank (policyholder) provides credit for financing the prime costs of an export transaction that is usually insured by SERV.

Working capital insurance is normally issued in combination with supplier or buyer credit insurance.

Insured risks:

• Non-fulfilment of bank claims for repayment agreed in the working capital loan agreement for loan amounts disbursed to the exporter.

The maximum cover ratio is 95% of the credit amount.

This SERV product is limited until the end of 2015.