Working Capital Insurance

You are a French exporter and you need a working capital loan for your export contracts. You would like to obtain working capital loans from French banks and subsidiaries or branches of foreign banks established in France and/or in an EU country in order to conclude export contracts

Working Capital Insurance

Presentation

Working Capital Insurance covers the lending bank against the risk of non-payment by a French exporter due to default or insolvency.
 
Working Capital Insurance is available in all countries (except certain prohibited countries or countries covered subject to conditions by the Credit Insurance policy in force).

Benefits
All formalities are handled by the lending bank.
No premium is invoiced to the French exporter: Bpifrance Assurance Export shares the bank’s fees.

How much?
The premium is payable monthly by the lending bank for each guaranteed loan, based on the covered amount of each drawdown reported by the bank, it being specified that the premium rate represents 90% of the rate invoiced by the bank to the French exporter.

 

 

About the Export Bond & Working Capital Insurance

Four good reasons to take out Export Bond Insurance or Working Capital Insurance

For French exporters:

  1. Bpifrance Assurance Export facilitates the setting up of export bonds or working capital loans, and allows you to expand your export revenue.
  2. The process is handled by the bank from start to finish. You have no formalities to complete or additional costs to pay.

For banks:

  1. With the Bpifrance Assurance Export insurance, you can take more commitments while limiting customer-related risks (French exporter).
  2. You have greater flexibility in managing your commitments by choosing the cover rate and price.

How it works

On receiving your insurance request (amount of Bonds to be issued or Working capital loan needed), we analyse the requirements laid out in the request.

After completing our analysis, the application is submitted for a decision either to the Internal Committee (for delegations granted by the French State to Bpifrance Assurance Export) or to the Interministerial Committee which decides, on a case-by-case basis, on the terms of the insurance policy to be issued.

A notification of the amount covered is delivered to the company. The issuing or lending bank then provides Bpifrance Assurance Export with an approval request for the bonds to be issued /working capital loan to be insured, within the limit of the amount granted.

An approval setting forth the terms and conditions of cover is then delivered to the bank.

The issuer sends a monthly statement on the outstanding amount of the bonds, or the lending bank a statement on the drawdowns made on the covered loan. These statements trigger the invoicing of the premium.

Documentation

Working Capital Insurance07-03-2022
PDF (0.2MB)
Working Capital In…
PDF (0.2MB)

Our partners

Other offers you might be interested in

Guarantees

Bpifrance provides guarantees that open up financing for riskier projects

Financing

Acting alongside the banks to meet the financing needs of businesses