Euler Hermes Deutschland
Cover for
Bad Debt
Losses
A brief overview
of mid-term cover
for capital goods
For deliveries
of capital goods
Credit Insurance
Large-scale deliveries
need cover on a big scale
Not every contract you win actually brings you a
profit. A deal can only be regarded as successful when
the money is on your account. But if a customer cannot pay the goods or services he has ordered, or even
projects which have been customized just for him –
because he is insolvent – the supplier is left carrying
the costs. In the worst case, this may lead to his own
firm going down. This is a danger which should not be
underestimated: in Germany alone, there were more
than 20,000 corporate failures per year.
High risks with capital goods
As a supplier of capital goods, your company has
particular need of greater protection against bad debt
losses than other businesses:
◾ Most capital goods are customized products with long
lead times and manufacturing periods. That is why
there is a high outlay of pre-shipment costs.
◾ We are nearly always speaking here of major plant and
machinery with a value of millions. The loss of these
receivables is a blow which is hard to absorb.
◾ In general, capital goods have long payment terms –
and the longer the terms, the higher the risk that your
customer could become insolvent.
Air separation unit by
MAN Diesel & Turbo,
delivery secured by
means of Cover for
Bad Debt Losses from
Euler Hermes.
A perfect fit: our Cover
for Bad Debt Losses
for Mid-Term Business
This specially tailored cover for bad debt losses from
Euler Hermes is exactly the right solution for general
contractors, manufacturers of or dealers in capital goods:
◾ With it, you can not only cover loss of payments after
the shipment of the goods, but also the pre-shipment
risk. That gives you planning security from the outset,
especially in major projects which need long lead
times, development work and expenditure for
bought-in components.
◾ The credit horizons are tailored to the long project
periods customary in capital goods deals and can be
anything up to 60 months.
◾ Good for exports all over the world: political risks can
be included too.
◾ Even later deliveries of spare parts and services in
connection with plant and machinery can be included
in cover up to a limit of 25,000 EUR.
The advantage for you: Euler Hermes already
indemnifies you if your customer has not paid by a
specified time (so-called Protracted Default.). That
way you don’t have to wait for your money until he is
declared insolvent.
Lower premium if goods are returned
If your capital goods are from series production, you
can save a lot of money: if you include a clause in your
contracts stipulating the return of the goods in the
event of non-payment and the set-off of the residual
value with the indemnity we pay to you, your insurance
premium can be reduced by a considerable amount.
Information, debt collection, indemnification:
with us you are on the safe
side – three times over
If a loss occurs you can be sure that we will pay. But it
is much better if the loss can be prevented before it
happens. And that is where you are on the safe side
with Euler Hermes:
First of all we check your customer’s
creditworthiness
Our specialists compile credit information from your
customer’s business environment and evaluate financial statements and annual reports. On top of that, they
have a lot of further information such as the payment
experience of other suppliers, their own know-how and
last, but certainly not least, a unique datapool with
information on 40 million companies worldwide. That
is how Cover for Bad Debt Losses for capital goods offers
you protection three times over – all over the world:
◾ It can prevent possible losses of receivables before
they happen thanks to the prior creditworthiness
check.
◾ It reduces the number of unpaid invoices by means
of an integrated collection service, carried out by
Euler Hermes Collections GmbH.
◾ And it indemnifies losses if a customer doesn’t pay
despite all our efforts to prevent it.
Always just the cover
you need
In contrast to normal credit insurance, which covers
short-term business with credit periods up to 12 months,
Euler Hermes covers deliveries of capital goods, in
some cases with single transaction policies, with credit
periods up to 60 months. That means that you can
focus on exactly the risks you need to cover.
The premium depends on the amount and the credit
period of the supplier credit, the country of destination
and of course on your customer’s creditworthiness.
The benefits at a glance:
◾ Cover for your receivables against commercial
and political risks virtually all over the world.
◾ On request, from the start of manufacture.
◾ Individual calculation of your premium.
◾ Maximum planning security.
◾ Partial refund of premium if delivery schedule is
terminated prematurely.
◾ Improved refinancing options through assignment of the benefit of claims on the insurance,
forfaiting.
◾ Reduce your balance sheet through non-recourse
sale of your receivables to a bank.
◾ Professional debt collection via Euler Hermes
Collections GmbH.
◾ Early indemnification in the case of non-payment
after a specified period (Protracted Default) –
even when your customer is not insolvent.
◾ Fast processing of claims within 30 days of
notification and after we have received all the
necessary documentation.
◾ Advice from experts on the ground where the
business is done.
Euler Hermes Deutschland
Niederlassung der Euler Hermes SA
22746 Hamburg
Postal address:
Friedensallee 254
22763 Hamburg
Tel.+49 (0) 40/88 34-0
Fax +49 (0) 40/88 34-77 44
[email protected] www.
eulerhermes.de
Your hotline for fast advice and help:
Euler Hermes CustomerService
Tel. +49 (0) 40/88 34-35 36
Fax +49 (0) 40/88 34-32 70
[email protected]
Berlin
Tel. +49 (0) 30/20 28 43-00
Fax +49 (0) 30/20 28 43-01
[email protected]
Hanover
Tel. +49 (0) 5 11/3 64 01-0
Fax +49 (0) 5 11/3 64 01-70
[email protected]
Bielefeld
Tel. +49 (0) 5 21/9 64 56-0
Fax +49 (0) 5 21/9 64 56-50
[email protected]
Cologne
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Fax +49 (0) 2 21/9 20 60-1 59
[email protected]
Bremen
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Fax +49 (0) 4 21/1 65 97-49
[email protected]
Leipzig
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Fax +49 (0) 3 41/9 08 23-10
[email protected]
Dortmund
Tel. +49 (0) 2 31/1 82 99-0
Fax +49 (0) 2 31/1 82 99-99
[email protected]
Munich
Tel. +49 (0) 89/5 43 09-0
Fax +49 (0) 89/5 43 09-1 66
[email protected]
Frankfurt
Tel. +49 (0) 69/13 48-0
Fax +49 (0) 69/13 48-1 60
[email protected]
Nuremberg
Tel. +49 (0) 9 11/2 44 05-0
Fax +49 (0) 9 11/2 44 05-30
[email protected]
Freiburg
Tel. +49 (0) 7 61/4 00 79-0
Fax +49 (0) 7 61/4 00 79-50
[email protected]
Stuttgart
Tel. +49 (0) 7 11/9 00 49-0
Fax +49 (0) 7 11/9 00 49-70
[email protected]
Hamburg
Tel. +49 (0) 40/2 36 36-0
Fax +49 (0) 40/2 36 36-1 66
[email protected]
152531/1 0316
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