Repayment Guarantee for Working Capital Credit Facilities Extended to Exporters
The repayment guarantee for a working capital credit facility extended to an exporter mitigates default risk by securing the punctual amortisation of short-term credit allocated for the execution of an export contract. This indemnity is mobilised in the event that the exporter fails to settle, within the stipulated maturity period, the aggregate or partial balance of the credit facility, inclusive of accrued interest, commissions and supplementary liabilities arising from the credit agreement.
Furthermore, this financial instrument facilitates a substantial appreciation in the available financing volume, as guarantees issued by the Export Credit Insurance Corporation (KUKE) reduce the utilisation of the exporter's pre-approved bank exposure limit by eighty percent. This solution has been engineered specifically for exporters seeking working capital financing from a lending institution to fund an international trade contract.
Core Covenants and Conditions of Cooperation
The credit facility extended by the bank shall not exceed a maturity profile of two years, calculated as the cumulative duration of both the drawdown and amortisation periods. The guarantee is issued at the instruction of the exporter in favour of the financial institution providing credit for the export contract.
Cooperation is implemented either via a structured Portfolio Limit Approach or under Transaction-Specific Terms.
Participation within the Portfolio Limit framework is restricted to commercial enterprises that demonstrate a verified historical operational record in export activities. Specifically, this covenant requires that over a selected three out of the preceding five years, revenues derived from international trade constituted an average minimum of twenty percent of gross revenues.
Should the enterprise possess an operational history spanning a duration of only three years, it shall be required to demonstrate the identical twenty percent export ratio across those initial three years. Following a rigorous underwriting assessment of the company's financial solvency, KUKE establishes a maximum credit limit under which individual guarantees may be executed. This portfolio limit is approved for a fixed tenure of one year, upon the expiration of which a comprehensive review regarding compliance with the criteria shall be initiated.
In scenarios where an enterprise does not satisfy the structural criteria required for the Portfolio Limit framework, it retains the capacity to secure a guarantee under Transaction-Specific Terms. This modality is engineered to safeguard the financing and supply chain logistics bound to an isolated, designated export contract.
The guarantee extends indemnity for up to eighty percent of the exporter's debt obligations. The maximum amortisation period for the liabilities secured by said guarantees is strictly limited to 719 days.
Application Path
- Navigate to the official KUKE website to find the precise institutional contact details designated for this specific financial product.
- Initiate formal communication with the authorised underwriting representatives of KUKE.