The reason for the GLOBAL GUARANTEE ON COMMERCIAL CREDIT is constituted by the compulsory payment by the buyer to the seller of the price contractually agreed for the sale of goods or provision of services; therefore it is an obligation exclusively of "giving".

In this case, the function of the guarantee is to be indemnified for the loss suffered by the creditor (the supplying company) due to the failure of another party (the purchasing company) to meet its payment obligation for the goods purchased or services received.

Therefore, the guarantee guarantees the beneficiary (the supplying company), in the established percentage of coverage and within the credit limits agreed for each purchaser, indemnification for losses incurred due to the failure to collect, as a result of the insolvency of a purchaser, receivables arising from the supply of goods and services. 

The advantages of the global guarantee on commercial credit are: 

• qualified selection of customers on the basis of the credit limits granted by the Company on each individual name; 
• there is no charge for information and searches carried out by the Company on individual names; 
• high coverage quota (percentage applied to the indemnifiable loss in order to determine the amount of compensation); generally, the overdraft is between 10% and 30% of the indemnifiable loss; this evaluation is made according to: seniority of the commercial relationship with the name; customer solvency, riskiness of the product sector, risk fractioning, product exclusivity and competition regimes, size of the seller
• in exceptional cases there is no obligation to guarantee the entire turnover and therefore the guarantee can be limited to a single predetermined share of the turnover or to a pre-established list of names; 
• Credit limits for new names are granted (or declined) by the Company within 15 days of receipt of the request;

once 180 days have elapsed from the date of notification of a purchaser's default, there is "presumed insolvency" with the liquidation of indemnification by the Company.

Therefore, the global guarantee allows the seller to obtain a qualified selection of customers and certain collection times even for outstanding receivables.

The costs of the "global guarantee" are established by evaluating multiple factors: size of the seller, product sector, risk splitting, exclusivity schemes, seniority and solvency of customers.

Documentation to be provided for a preliminary review of the request is as follows:

- last two approved financial statements, with the required attachments, of the seller;

- list of clients, indicating: company name, registered office, tax code, sum total of

purchases made in the last three years

- average exposure per client; 

- average and maximum delay allowed for buyers.

“This document is a simple translation into English of the original document in Italian, the official language of Cantone Ticino, which can be found on the website www.csc-lugano.ch. Therefore, in the event of inaccuracies, errors, imprecisions, or difficulties in interpreting this document, the original document in Italian shall prevail; this also applies if there is a contrast between what is reported in this document and what is reported in the original document in Italian. - Il presente documento è la traduzione semplice in lingua inglese del documento originario in lingua italiana, lingua ufficiale del Cantone Ticino, presente sul sito www.csc-lugano.ch; pertanto in caso di inesattezze, errori, imprecisioni, difficoltà interpretative del presente documento, prevale il documento originario in lingua Italiana; questo anche nel caso in cui vi fosse un contrasto fra quanto riportato nel presente documento e quanto riportato sul documento originario in lingua Italiana.”