Terms that add up.

Collateral.

The benefits of the collateral instruments used by Magirus lie in the fact that the receivables secured do not affect your limit, so that an extensive credit line is available to you.

• Secureties
• Bank guarantee (guarantee credit)

Guarantee credit may be understood as the acceptance of liability towards Magirus, in particular in the form of a surety, credit instruction or guarantee from your bank (guarantee lender) for and on behalf of yourself (guarantee borrower). Under a guarantee credit, your bank undertakes to accept liability for the amounts which you own Magirus.

In this way, via a conditional payment commitment by your bank, Magirus acquires prime security for existing and (any) future claims.

• Payment confirmation

Your bank undertakes to pay the debt, provided your customer has transferred the amount.

- Letter of comfort from the parent company

The letter of comfort is used as a hedging instrument, in particular in the case of group companies, since it does not need to be posted under the contingent liabilities or mentioned in the annual report, with the result that the borrowing capacity of the parent company is not affected as a result.

If your company is a subsidiary, your parent company could therefore accept liability on behalf of your company.

Assignments

The assignment of receivables (defined in §§ 398 ff. of the German Civil Code) is a contract between the former creditor of the receivable in question (assignor) and Magirus, as a new creditor (assignee). When the contract is concluded, Magirus becomes the creditor of the assigned receivable, without taking on the obligations of the guarantor under the underlying transaction to which the receivables relate (e.g. warranty obligations).

• Disclosed assignment

You make your customer aware of the assignment. This has the advantage that the third party debtor may pay direct to Magirus with debt-discharging effect.

• Undisclosed assignment

If a receivable is assigned by way of security without notification to the third party debtor, in the form of an ”undisclosed assignment”, you may use your receivables as a security device.