Netherlands to insure business risk in capital goods lending for SMEs

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

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The Government of the Netherlands offers Mexican small and medium-sized businesses insurance against commercial and political risks to use to finance imports of Dutch-origin capital goods, said Karel van Laack, Chairman and CEO of Atradius Seguros de Credito México. .

For several years, the Dutch government has provided long-term financing for Mexican companies , however, this year it is relaunching the product so that businesses can go to any financial institution in Mexico to apply for the loan and take out the insurance offered by the Netherlands. via Atradius Dutch State Business.

The advantage is that small and medium-sized entrepreneurs get credit insurance and the bank can offer them more competitive conditions , said Laack.

Funding provided by Atradius Dutch State Business (ADSB) is granted for a risk period of 24 months and 12 months or more for credit, provided the funding granted is for a minimum of 5 million euros . Although the credit terms can be flexible depending on the importer and the buyer.

These insurances for capital goods that can be used by small and medium-sized enterprises are granted for any good, as long as it is used in projects that do not generate high polluting emissions.

Commercial banks offer them credit and the Dutch government, through Atradius Dutch State Business, provides insurance to Mexican companies that want long-term financing to import Dutch capital goods.

One of the benefits that the government of the Netherlands offers this insurance is that Mexican private banks stop worrying about business and political risks, which therefore means that the cost of financing can be much more competitive that without this insurance.

The Mexican bank, in collaboration with Atradius Dutch State Business, will assess the credit risk represented by the importer and, if approved, Atradius will issue insurance in favor of the bank, insuring 95% of the business risk, including the prefabrication risk.

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