Essential inputs | Direct Guarantee
It facilitates the medium to long-term purchase of essential inputs for internationalised Spanish companies by hedging the main risks in favour of the selling company
Coverage of up to 80% of unpaid invoice or termination value
The Essential Inputs Policy | Direct Guarantee is a support to Spanish companies for their industrial activity
Cesce offers a guarantee to the input seller, whether it is a Spanish or foreign company, against:
- Risk of non-payment of inputs delivered and invoiced covered by an agreement.
- Risk of non-payment of the termination value of the medium to long-term sale and purchase agreement.
The coverage percentage can be up to 80% of the invoices issued or of the value of unpaid termination.
This guarantee makes it easier for internationalised Spanish companies to develop their industrial activity.
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The guarantee is issued in favour of the selling company, which may be foreign or Spanish
The acquiring company, usually the debtor of the secured credit, must be internationalised:
- It needs to have exported at least 25% of their sales in two of the last three years.
- In the case of start-ups, the external revenues foreseen in their business plan shall be verified.
Who can apply?
Both the selling company and the Spanish buyer can apply.
The Spanish buyer, in case of approval, will receive an indicative offer from Cesce that it can use in its negotiation with the input supplier.
Cobertura de hasta un 80%
The insurance covers the risk of non-payment and/or wrongful termination by the Spanish company of agreements for the purchase and sale of essential inputs.
Agreements must have a minimum term of two years and provide for minimum quantities and prices (they may be indexed).
Non-payment risk
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Loss due to non-payment of the input that has already been supplied and invoiced to the Spanish company.
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Loss due to non-payment of the termination value set out in the sale agreement.
It guarantees the risk of non-payment that may arise as a consequence of both the de facto insolvency (prolonged default) and a statutory filing in law (insolvency proceedings) of a purchasing company –debtor– and, where appropriate, the Guarantor.
Risk of agreement termination
At the Beneficiary's request, the guarantee may also cover the risk of unilateral and improper termination of the agreement by the Purchaser, up to the limit of the provisions of the Agreement in this case.
REQUEST MORE INFORMATIONCesce will calculate the price of the guarantee following a pricing system
The pricing system takes into account, inter alia, the following elements:
- The financial solvency of the debtor and, if applicable, of its Guarantor.
- The duration of the guarantee.
Ask us about the conditions and price of the guarantee when you identify a possible operation that meets the eligibility requirements.
Send us an application and we will consider it
- Application submission for coverage by the purchaser or seller of the input.
- Risk analysis by Cesce. Once the request is received and a check is performed that the operation is eligible to be subject to coverage from the State pursuant to the regulations in force, Cesce analyses the risk for which coverage is being requested against the information provided. Cesce focuses on the creditworthiness of the exporting company procuring the inputs (the debtor) and, if any, its Guarantor. A copy of the sales agreement will be requested.
- Raising the proposal for coverage. Cesce submits a proposal to the competent risk committee, depending on the amount to be insured.
- Cesce's response to the applicant. In case of approval, Cesce will issue
- a draft guarantee agreement for the beneficiary, and
- a draft agreement for requesting and issuing guarantees to the purchaser, including the obligation of the company purchasing the input to reimburse Cesce for any amount executed against the guarantee issued.
- Coverage formalisation. If the seller and buyer accept these drafts, the parties formalise the cover by signing the guarantee agreement, the guarantee application and issuance agreement, and the payment of the premium by the beneficiary.
If you are interested, please fill in and email the application form to cuentadelestado@cesce.es.
If you have any questions, please call +34 900 115 000 or send us your details, and we will contact you.
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