ABN Amro and Euler Hermes, part of the Allianz Group, have announced the signing of a distribution agreement to launch a new product which will reduce the risks involved in exporting.

The product, a package of services which will allow businesses take out an insurance policy against non-payment for goods and service transactions abroad, is expected to help small and medium sized businesses deal with foreign customers.

As Han de Ruiter, ABN Amro’s director of SME relationships, explains, The SME sector has been telling politicians and the business sector for a long time that it needed more help to export its products. And the transaction policy will enable them to get the information they need so that they can sell their products abroad.

The insurance will also pay out quickly if the foreign debtor fails to pay. This may be precisely the support that exporters need if they are to maximize the export opportunities available to them.

Businesses will be able to obtain the information they need on debtors online, use a transaction policy to insure export transactions for up to E100,000 against the risk of non-payment and receive assistance with foreign collections. If a debtor fails to pay, the insurance will provide for payment within 30 days of collection.

The package of services and the transaction policy will be available from the end of this year.