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Revolving Buyer Credit Cover

Insuring export business as bank

Insuring loans granted to finance German exports

You, as a bank, would like to insure loans granted to finance regular, short-term German export transactions? Our Revolving Buyer Credit Guarantee will be the ideal tool for that. This form of cover enables the bank to insure the claim to repayment of the loan amount agreed in the loan agreement with the foreign buyer and disbursed to the exporter.


Worth knowing: You can find out whether this form of cover is suitable for your transaction in question by answering just five questions for the feasibility check. Besides, you will receive an indication as to the amount of the premium payable in the course of the online application process, that is before actually submitting an application for cover.

Revolving Buyer Credit Cover at a glance

Target group

  • German banks
  • Branch offices of foreign banks in Germany
  • Foreign banks (under certain conditions)


Payment terms of the covered transactions

Short-term (up to 12 months, in exceptional cases up to 24 months)


Insurable risks

Revolving buyer credit cover offers protection against payment default, particularly if

  • the borrower becomes insolvent
  • the borrower fails to make payment within one month after due date (protracted default)
  • adverse measures taken by foreign governments or warlike events
  • local currency amounts are not converted or transferred


Special features

Interest agreed in the loan agreement can be covered only up to a rate of 8% annually.

The exporter need not submit a separate application in respect of the transactions to be included in the cover and is not granted separate Hermes Cover for them. However, specific arrangements ensure that the exporter is protected in a way comparable to Supplier Credit Cover.

In principle, cover facilities are available for all countries with the exception of exports with credit periods of up to two years to EU and core OECD countries (i.e. EU member states as well as Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland, the United Kingdom and the United States).



  • A certain percentage of the order value covered (interest excluded) as well as specific processing fees
  • A detailed calculation can be obtained with a premium calculator.


Uninsured portion

  • 5% for all risks

How does a revolving buyer credit cover work? 

Revolving buyer credit cover enables banks to insure their receivables under a loan agreement on the financing of a German exporter’s regular, short-term export transactions with a specific foreign buyer. The policy period of a Revolving Buyer Credit Guarantee is one year and it will be automatically extended unless notice of termination is given in due time, at the latest one month before the expiry.

Icon: FAQ

FAQs Revolving Buyer Credit Cover

Do all insurable amounts due to the bank from the foreign buyer have to be declared? 

No, there is no obligation to offer all insurable amounts due for cover.

How are the exporter’s risks insured? 

When an export transaction is financed under revolving buyer credit cover, a Manufacturing Risk Guarantee (pre-shipment cover) can be granted in favour of the exporter, but it is not possible to get a separate Supplier Credit Guarantee (export credit cover). The receivables due under the transaction are not required to be declared under an existing Wholeturnover Policy, and are conse­quently not covered by it.

However, since the exporter is already on risk from the moment when he ships the goods, liability under the Revolving Buyer Credit Guarantee is advanced to the point of shipment of the goods (or the commencement of work or services). This means that the Federal Government can no longer exclude from cover the as yet not disbursed part of the loan in respect of a consignment already shipped if the risk subsequently increases. This protects the exporter in the event that the quality of the risk deteriorates after the goods have passed out of his hands.

In addition, the bank waives its right to cancel the loan by its own decision, i.e. it may only rescind the loan agreement with the con­sent of the Federal Government.

What points need to be observed in the interest of the exporter?

The (indirect) insurance against the exporter’s supplier credit risk under a Revolving Buyer Credit Guarantee differs from a conventional export credit guarantee in several respects.

First and foremost, it should be noted that the protection given by the advanced liability of the insurer is only effective if and when all the prerequisites for revolving buyer credit cover are fulfilled. This requires close cooperation between the bank and the exporter: agreement should be reached between them whether the financing of the consignment in question is to be included in the cover or not. It is also in the exporter’s interest to make sure that the bank meets the deadlines for notifying the receivables to the Federal Government and to ensure that there is sufficient cover free for the amount thus due within the limit granted.

Since it is crucial for the exporter to receive the disbursement out of the loan after shipping the goods, it is important that the loan contract does not stipulate that the payment of the loan amount depends of the consent of the foreign buyer.

What horizon of risk is covered? 

The Revolving Buyer Credit Guarantee has a policy period of one year and is automatically renewed for another year unless notice of termination is given in time.

Can a Revolving Buyer Credit Guarantee be used for refinancing purposes? 

The claims arising under a Revolving Buyer Credit Guarantee can be assigned to banks or forfaiting houses for refinancing purposes.

No Securitisation Guarantee can be granted for the receivables concerned.

Do you have any additional questions regarding revolving buyer credit cover? 

Our experts will be pleased to answer any questions regarding a Revolving Buyer Credit Cover and will guide you step by step through the application process if desired.

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Your Contacts

Please do not hesitate to contact us.
Matthias Jost
Counter-Guarantee; Export Credit Cover for Service Providers, Revolving Buyer Credit Cover
John Zöllkau
Wholeturnover Cover (Revolving Cover)
Mona von Plate
Shopping Line Cover, Revolving Buyer Credit Cover