Export Credit Guarantees

Wholeturnover Policies

German Federal Export Guarantees

Federal export guarantees are made available to help support German exports, and can be used to safeguard export businesses against the economic and political risks associated with payment defaults. The APG (Wholeturnover Policy) is one such guarantee. German exporters who regularly supply several customers in different countries can use this policy to secure receivables with credit periods of 12 months or less. The APG Light works based on the same principle, but is designed primarily for small-to-medium-sized exporters, as it secures short-term claims with periods of up to four months. The APG is, therefore, a cost-effective method for German exporters who are active in higher-risk markets and have annual coverable export sales of at least €500,000 to secure short-term receivables. In particular, the APG provides protection against payment default due to

 

  • Customer insolvency
  • Non-payment of a claim within 6 months of its due date (“protracted default”)
  • State intervention and military conflicts
  • Non-conversion/non-transfer of national currency amounts
  • Confiscation of goods as a result of political circumstances
  • Political circumstances rendering contract fulfillment impossible 

 

If necessary, the Wholeturnover Policy (APG) can be supplemented with 

 

  • Manufacturing risk coverage
  • Confiscation risk coverage
  • Contract bond coverage
  • Counterguarantees

 

The German federal government has appointed Euler Hermes AG and the PricewaterhouseCoopers professional services network to process applications for federal export guarantees. These companies are authorized to send and receive substantive declarations in the name of the federal government. Euler Hermes is responsible for both companies in this regard.


The global expertise it has acquired over the course of over a century has helped Euler Hermes develop the ability to provide uniquely precise and comprehensive risk analysis. As such, Euler Hermes is now the world’s leading provider of commercial credit insurance solutions. Its approach to commercial underwriting is distinguished by a network of risk experts in more than 50 countries throughout the world. They actively monitor accounts receivable, conduct visits to debtor companies, and react quickly to company credit-limit applications.

Valuable Security, But Lacking SAP Integration

To exporters, APG represents a valuable means of protection, one that allows them to pursue business opportunities in risky markets as well. However, the APG’s advantages are offset by its lack of integration into SAP. This means that decisions regarding guarantee applications submitted online cannot be managed in SAP, nor can reporting obligations (e.g., sales reports) be fulfilled through SAP. SAP is also incapable of creating analyses for APG portfolios.

 

SOPLEX has developed an SAP-based program that allows users to integrate federal export guarantees, along with their associated reporting obligations, into SAP and manage them in a single software application. 

 

Discover our Euler Hermes APG Connect solution.