Accelerated completion through simplified processing
Insufficient liquidity often complicates the completion of a new export transaction. The SERV counter guarantee could be just what you need. As of now, you can apply for a cover commitment for a counter guarantee of up to CHF 800 000 from SERV through a simple process and receive it within a working week. Markus Löbke, a risk analysis expert who heads the SERV corporate analysis team, tells us in which cases the guarantee can be issued.
What is a counter guarantee?
We use counter guarantees to provide security to banks issuing guarantees for Swiss exporters in favour of foreign buyers. If the guarantee is called in and the exporter is unable to fulfil its repayment obligation to the bank, SERV intervenes. The counter guarantee is always issued in combination with contract bond insurance, which protects the exporter from an unauthorised call on the guarantee by the buyer.
What are the benefits of the counter guarantee for exporters?
The SERV counter guarantee mainly secures the exporter’s liquidity. Without the SERV counter guarantee, exporters need to create their own collateral through using their bank limits or depositing cash with their bank. The SERV counter guarantee effectively replaces these securities, so the exporter has more leeway and can use their liquidity to complete the export transaction instead.
A cover commitment for a counter guarantee can now be issued within a working week. How is this possible?
It works through a new risk evaluation model. We want to understand the company’s business and liquidity situation with regard to its key financial figures. We have created a brief questionnaire, which helps us assess any given company’s financial situation.
What are the conditions for this abbreviated process?
First of all, the project needs to involve bonds up to a maximum of CHF 800 000. Then, we need the fully completed questionnaire, the latest annual results and a correctly submitted application.
What information does SERV need?
We use the questionnaire to gather data on the exporter, including some financial figures. This data tells us what we need to know about the company’s success, liquidity and stability. We also want to know more about the export order and the product. This allows us to learn more about the exporter’s project processing knowledge.
Why has SERV developed this simplified process?
A key component of our mandate is promoting Swiss SMEs. Today’s business world is changing unbelievably quickly. That makes it all the more important for companies to be able to conclude their transactions as simply and securely as possible. And this process allows us to support both SMEs and large companies with smaller projects.
The SERV counter guarantee improves Swiss companies’ liquidity and thus broadens their financial scope.
