Has the buyer not paid for your delivery, or is it refusing to accept it? This can make things difficult for you. To ensure it doesn’t get to that point, losses should be avoided or minimised. SERV can advise you on which measures you can take to avert loss, so that you don’t find yourself in a tricky situation.
Maintaining good relations with your customers and meeting all of your obligations for an export transaction are your main priorities. It is therefore important that you don’t hesitate – let us know immediately if you become aware of any breaches of duty by the debtor, any risk aggravating factors, or if an insured event occurs. After you have notified SERV’s employees, they will advise you on what to do next and agree the necessary measures with you.
If your foreign debtor has started to neglect its duties – i.e. it is in breach of essential contractual obligations (e.g. it fails to pay an invoice) or is refusing to accept the goods – this can be a strong indicator of imminent loss.
Risk aggravating factors are another potential sign. This includes the following situations:
- A debtor is more than one month in arrears with their payments
- A debtor requests an extension of the payment period
- The financial situation of the debtor or the jointly liable third party (e.g. in the case of a guarantee by a parent company) changes or appears to be deteriorating
- Administration or liquidation proceedings are initiated against the debtor
SERV defines a loss as the occurrence of an insured risk and the expiry of the waiting period. The waiting period is three months for insurance for exporters and one month for products for financial institutions, starting from the occurrence of the insured risk. No waiting periods apply for guaranteed events (e.g. counter guarantees).