Forfaiting Insurance

Who is eligible

Banks offering their customers export financing in the form of forfaiting.

Benefits

1. Forfaiting Insurance protects a bank against the risk of not receiving payment from a foreign company.
2. KUKE can cover up to 100% of receivables purchased by a bank.
3. We are able to provide insurance cover after commencement of an export contract.
4. Payment of compensation under Forfaiting Insurance is guaranteed by the State Treasury.
5. Insurance conditions meet international standards set by the OECD.

Eligibility criteria

• The subject of insurance are undisputed receivables purchased by a bank due from foreign buyers, arising from deliveries of goods and services by Polish exporters (with credit period of at least two years).
• Receivables should be purchased no later than seven days prior to the date of payment of the first insured receivable.
• The insurance covers post-shipment risk i.e. the risk occurring after the delivery of goods or completion of services and concerns the inability to recover receivables due from a foreign buyer. Insurance cover is available for causes of loss qualified as commercial risk and political risk.
• Our premium rates are harmonized with the OECD minimum premium rates system adopted by countries which have signed the so-called OECD Consensus.

Do you have questions? Please contact us.