Support of small and medium-sized enterprises

 
EGAP offers its services to all Czech exporters and investors, regardless of their size, legal form, or volume of insured exports.
Supporting the export activities of small and medium-sized enterprises (SMEs) is one of our priorities and represents a significant long-term clientele for EGAP. Our clients can find the right products for their needs within our portfolio, whether that's production risk and invoice insurance against the risk of non-payment, through working capital loans or investments, guarantees of performance or retention.
 
Does your firm belong to the SMEs?
According to an applicable definition1, small and medium-sized enterprise is a company that:
  • has fewer than 250 employees,
  • it has a balance sheet total that does not exceed 43 million EUR or a turnover not exceeding 50 million EUR in the last financial year.
 (These limits apply to the retrieved sum of all companies linked or associated with the enterprise in question).
 
To ensure your SME export activity is easier we provide:
✔ consultation of your export intentions with our sales representatives,
✔ long-term support for exporting activities,
✔ free rapid assessment of insurance options based on just a few basic business plan parameters,
✔ reduction of administrative burden.
 
 
 
How can EGAP cover your export-related risks?
Let us explain the principle of our insurance product B - invoice insurance.
The owner of a microbrewery, Mr. Brewer, has a customer in Serbia. The customer wishes to purchase beer and beer kegs worth CZK 600,000 but does not have the entire amount in cash and wants to pay for the goods delivered in a month. What happens if the customer does not pay for the beer? That is when Mr. Brewer requests EGAP to conduct the customer’s creditworthiness assessment, and if the check comes out positive, he takes out an insurance policy. If the customer makes the required payment in time, the insurance contract shall be duly terminated. No further action shall be required. In the event of a customer default, EGAP will intervene and settle the outstanding amount with Mr. Brewer. EGAP will then assume responsibility for pursuing the subsequent debt collection.
How does this insurance work?
The insured is Mr. Brewer, who is insured against the risk of non-payment by the customer of the total outstanding amount, i.e., the price of the delivered goods (invoice), within the set deadline. Mr. Brewer's self-retention is 10%.

 
 
1  This definition is based on Act No 47/2002 Coll. (on aid to SMEs), which defines the definition by EU rules, i.e. Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring some of the categories of aid compatible with the internal market with accordance in Articles 107 and 108 of the Treaty (or Commission Recommendation 2003/361/EC of 6 May 2003).