If a financial institution grants an exporter a loan to finance the prime costs of an export transaction, the financial institution can take out working capital insurance from SERV. The financed export generally has to be insured with SERV, too.
The insurance covers the financial institution’s claims for repayment from the exporter or its subcontractors under the working capital loan agreement. SERV indemnifies the financial institution if the exporter becomes insolvent during the credit period or fails to make the instalment payments on time.
- Cover Ratio: 80%, cover up to 95% is possible in justified, exceptional cases.