KfW IPEX-Bank Shopping Line Loans facilitate financing of German goods and services

You pool all the German supply transactions over a certain period of time into tranches and we disburse to you a portion of 85% of the already paid invoices in one single payment for each tranche. You do not need a separate loan agreement for each transaction, which saves time and money.

Under the Shopping Line Cover the financing is limited to 85% of the contract value. Nevertheless, a separate uncovered loan from us can be an option for the advance payment on a case by case decision.

The loan amount under a Shopping Line Cover should be a certain portion of the German purchases that you plan for the near future. The minimum amount should not be lower than EUR 50 million (or the equivalent in USD) but there is no predetermined ceiling.

The maximum repayment period depends on the duration of the disbursement period and whether you are domiciled in an OECD high-income country. You will need to repay the loan in equal instalments. As an illustration:

	Buyer in a non high-income country	Buyer in a high-income country
max. permitted door-to-door loan period	10 years	8.5 years
disbursement period (example)	2 years	2 years
repayment period for each tranche (= loan period minus disbursement period)	8 years (16 instalments)	6.5 years (13 instalments)

Yes! The first disbursement/tranche can include up to 50% of already executed and completed transactions. Some restrictions apply to those transactions.

Yes! The possibility of pooling many (small) transactions into one tranche with one disbursement and one harmonised repayment profile is one of the advantages of a Shopping Line Loan. For small-ticket contracts with a contract value below EUR 5 million, there are even various reliefs (limited to four contracts per supplier).

The German suppliers need to provide a standard Letter of Undertaking and an Anti-Corruption Declaration to Euler Hermes. Therefore, it is crucial to inform the suppliers about the Shopping Line Cover. Small-ticket suppliers (contract value below EUR 5 million are in most cases exempted from providing any documents to Euler Hermes.

Buyers with a sound balance sheet, domiciled outside Germany, are eligible for our loan and this Hermes Shopping Line Cover. The buyer and the borrower have to be the same entity.

We would request a description of your company, and the last three audited financial statements from you as buyer. It would be an advantage to provide an overview of your recently completed German imports and planned future purchases.

KfW IPEX-Bank will not finance goods or services which are illegal, harmful to the environment, or where the supply contract was awarded through bribery – regardless of whether a Shopping Line Cover exists or not.

We will analyse your general corporate policies with respect to environment, health, and social standards (EHS) and – where identifiable – your production sites for which equipment is purchased for.