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LIQUIDITY

ENGINEERING

BANKS, FINANCIAL INSTITUTIONS

Insurance for commercial risks arising from insolvency and late payment.

Financing of purchasing invoices on revolving base.

TYPE OF INSURANCE:

OBJECT OF COVER:

INSURED RISK:

INSURED EVENT:

POLICYHOLDER:

BENEFICIARY OF COVER:

PERIOD OF INSURANCE:

INSURED VALUE:

MAXIMUM INSURED VALUES:

RISK ASSESSMENT:

CALCULATION OF PREMIUM:

COVER BASEL 3 COMPLIANCE:

ADVANTAGES:

 

 

 

 

 

 

 

NOTES:

Reverse trade credit insurance.

Financing of revolving invoices on purchases (1).

Insolvency, protracted payment delay.

Failure to repay loan by customer.

Bank/Financial Institution (2).

Bank/Financial Institution (2).

12 months.

90% (3).

  • Single risk, single client: € 50 million.

  • Minimum premium: depending by risk profile. Limitations to damages limits may apply. 

The risk assessment is performed by the insurance company, in certain circumstances it can be deferred to the policyholder, with reduction of insured values (4).

The calculation of premium occurs based on risk parameters relevant to the borrower, the suppliers and with reference to the applicable industry sector.

The policy is applicable as alternative to the mandatory fractional reserve requirement imposed by the Basel 3 Protocol (5).

For the Bank/Financial Institution:

  • Management of insolvency risk;

  • Avoidance of stranded funding payments;

  • Reduction of fractional reserve by Basel 3 protocol;

  • Repayment with certain terms and times;

  • Additional margin on financing;

  • Marketing, market positioning.

For the funded client:

  • Better management of purchases;

  • Optimization of purchasing costs and conditions;

  • Increased liquidity;

  • Reduced cost of financing;

  • Ability to plan sale and purchases on long term basis.

For the funded clients supplier:

  • Certainty of payments.

  1. Max. invoicing period: 180 days.

  2. Factoring, Leasing, Financial companies, Investment Funds, etc.

  3. Can be extended up to 100%.

  4. Special conditions and/or deductibles apply.

  5. May vary in relationship to the single financial institution and the Central Bank of reference.

 

The economic values and technical conditions indicated, the description of the covers and the policy details are purely indicative and non-binding. The insurance company and the subscription agency reserve the right to assess and decide on the assumption of risks and the emission of policies.

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