Guarantees for your Business
Would you like to find out more about funding tools to protect your foreign business? Whether your project involves exports, investments or raw materials, the Federal Government strengthens it with special guarantees. We will be happy to advise you on these options.
Anyone planning business in developing and emerging countries is often confronted with political or economic risks. For decades, the Federal Government has been helping companies to hedge some of these risks with proven tools, regardless of the size of your company and the planned foreign business.
Export Credit Guarantees: Protection Against Payment Default
Do you want to expand into high-risk countries or maintain business relations in difficult times? The state export credit guarantees protect you against defaulting payments for deliveries to these markets. The Federal Government steps in when sufficient cover against such defaults is too risky for the private sector. The principle: the exporter or financing bank transfers a large part of its default risk to the Federal Republic of Germany and pays a premium for it. Euler Hermes Aktiengesellschaft processes the applications as a service provider on behalf of the Federal Republic of Germany. Good to know: a simplified procedure applies to small and medium-sized enterprises.
Investment Guarantees: Protection Against Political Risks
Anyone planning investments in developing and emerging countries is often confronted with political or economic risks. For decades, the Federal Government has been helping you to hedge some of these risks with proven instruments, regardless of the size of your company and the planned foreign business.
An Overview of your Benefits: How the Investment Guarantees Protect You
UFK Guarantees: Protection for Projects Involving Raw Materials
Are you and your company involved in projects that involve raw materials? You’re not alone! Because domestic resources are limited, as an industrialised country, Germany is dependent on a stable supply of raw materials from abroad. This is initially a task for the companies themselves. However, bottlenecks, trade distortions, drastic price increases or the political framework conditions can make the market situation and your access more difficult. Untied Loan Guarantees, or UFK guarantees for short, ease the situation. They are part of the Federal Government's raw materials strategy and secure the project against economically and politically induced loan defaults.
Requirements for UFK guarantees include an assessment of your project as "worthy of promotion in the raw materials economy" and it must be in Germany's federal and overall economic interest. Aditionally, you must have concluded a long-term raw material supply contract with a German buyer.
Stay up to date: The AGA Report regularly informs you about nationwide events on export guarantees.