When you retail a product or provide a service, you expect being paid. But do you know your clients and their solvability? Despite all your safety measures, you are never fully protected from a bad payer or from bankruptcy of a reliable debtor which you sought unfaltering.
The export credit insurance is designed to cover Luxembourg exporters against the non-payment risks of their clients, whether those risks arise from political or commercial origin.
In many export transactions, the buyer requires the exporter to provide a contract guarantee in favour of the buyer. This could, for example, be a bid bond, an advance payment guarantee or a performance guarantee. ODL can protect both the exporter and the contract guarantee issuer (normally the exporter’s bank) against risks associated with different contract guarantees. The bank may apply for ODL cover, while the insurance for unfair calling is available for the exporter.