There are a number of guarantees that share the bank’s risk in the exporting company, which increases the capacity for credit. Loans to the buyers in export transactions, discounted bills of exchange and confirmed letters of credit can also be insured.
Guarantee for loss on claim for banks is used when you provide a loan to the buyer in an export transaction, a so-called buyer credit. The guarantee covers the risk that the loan is not repaid.
Counter guarantees share the recourse risk on the exporting company when you issue a contract guarantee in favour of the buyer, such as an advance payment guarantee.
Working capital credit guarantees share your risk when you extend working capital credits or overdraft facilities to small and medium-sized companies.
Investment credit guarantees share your risk when you extend investment credits to small and medium-sized companies.