Working Capital Loans

This policy covers the risk of non-payment of a credit whose purpose is to finance a Spanish company with internationalisation contracts.

The financing can be used for the purchase of raw materials, payments to suppliers, staff costs, etc. It can be structured as a pre-financing loan, a line of credit, invoice discounting with recourse to the exporter, etc.

Who is the insured? 

The Insured Party will always be the Bank, which may apply directly to Cesce for coverage.

Who can apply for coverage?

The Exporter can also apply for coverage if it has not yet secured financing with a specific Bank. If the transaction is approved, Cesce will issue an indicative tender, which the exporter can transfer to the financial institution with which it finally decides to operate. The Tender will be formalised in a Policy once the assigned Bank sends a signed copy to Cesce as proof of acceptance.

Commercial risks

Commercial risks: non-payment of the Credit due to insolvency in fact (prolonged default) or a statutory filing in law (insolvency proceedings, bankruptcy, suspension of payments, etc.) of the Exporter (debtor) and, where applicable, of the Guarantor.

There are no limits (maximum or minimum) on the amount per transaction.

The maximum amount of coverage per transaction will be limited by the amount of the Credit approved or pending approval by the insured bank.

The credit must be used to finance the execution of one or more export contracts by a Spanish company or its foreign subsidiary. 

Insurance price is aligned with banks’ prices

Cesce’s premium is determined on the basis of the price charged by the insured bank, which must declare the ordinary interest rate applied in the loan as well as its general funding costs at the time of the application for cover.

The premium is calculated by subtracting the funding cost from the ordinary interest rate. A surcharge of 5% will be applied to the resulting amount.

Example:
Interest rate: 1,5%
Funding Cost: 0,3%
Base rate for premium calculation: 1,2%
Premium (base rate+ surcharge of 5%): 1,26%

You need to send an application, which will be examined and analysed. 

• After receiving an application, Cesce analyses the risk associated with the requested coverage based on the information provided by the Insured Party.

• The risk analysis examines the creditworthiness of the exporting company (debtor of the credit) or, where applicable, of the Guarantor.

• If the company has a favourable credit rating from Inbonis Rating, the assessment time is reduced, as Cesce recognisesthis agency’s ratings.

• The study also examines the feasibility of the contract, the exporter's ability to perform the contract, and the possible environmental impact, among other aspects, ensuring at all times that the transaction qualifies for coverage by the State in accordance with current regulations.  

• Once the risk has been analysed, the Company submits a proposal to the decision-making body. If approved, Cesce will issue a proposal of terms and conditions. If the Insured Party accepts the proposal, the coverage will be formalised once the parties have signed the Insurance Policy and the Insured Party has paid the premium.

If you are interested, please fill in and email the application form to  cuentadelestado@cesce.es.   

If you have any questions, please call +34 91 193 19 99 or send us your details, and we will contact you..