BIL TRADE FINANCE
BIL supports you in your
international growth initiatives
BIL is ideally positioned to support Luxembourg companies wishing to export their products/services thanks to the insurance products offered by the Office du Ducroire (ODL – a public institution that supports companies in their international growth).
“BIL, your international growth partner”
Bank loan insurance
International growth represents a real challenge for companies, especially small and medium-sized enterprises (SMEs) and mid-caps. Canvassing, setting up, recruiting and even adapting products to the local market all involve big investments and high operational costs, with no immediate return on investment.
Importing and exporting requires significant financial resources.
The agreement signed between BIL and ODL answers this challenge. It facilitates companies’ access to funding during the operating cycle for import-export projects through a framework policy covering up to 50% of the default risk for the loans taken out.
By insuring part of the risk borne by BIL, bank loan insurance provides considerable leverage for the funding that BIL grants to Luxembourg companies.
Guarantee commitment insurance
When it comes to international development, it is often useful (or even obligatory) for the exporter to issue guarantees (advance payment guarantee, performance guarantee, etc.).
BIL grants such guarantees for Luxembourg companies, for the benefit of their clients abroad.
The exporter then enters into a contract with the foreign client and instructs the bank to issue the guarantee.
By covering part of the default risk, ODL enables BIL to grant more bank guarantees to Luxembourg companies. Should the exporter default on payment, ODL will compensate BIL for this amount.
Export insurance
Credit insurance protects Luxembourg companies against losses from clients defaulting on payment. More specifically, ODL covers:
- Debtor-specific risks (e.g. default or insolvency)
- External constraints (e.g. political and similar risks such as transfer risks or currency shortages, wars, revolutions, natural disasters and acts of state)
This credit insurance service provides three distinct benefits:
- Information on the creditworthiness of your clients and prospects
- Collection of unpaid debts
- Compensation for secured claims
If necessary, BIL can act as beneficiary of an insurance policy issued by ODL.
