By protecting exporters' accounts receivable, Express Insurance is a product that provides significant benefits with little hassle. Featuring free credit reports on foreign buyers and a streamlined application, Express Insurance empowers exporters to overcome obstacles in the way of increasing international market share.
The protection of a policy equips exporters with the confidence needed to chart a path forward with margins they can depend on. Companies can increase their global competitiveness by offering credit terms needed to win sales. Moreover, Express Insurance empowers exporters to overcome cash flow challenges by borrowing against their insured receivables.
Use Express Insurance to:
- Insure against nonpayment by international customers.
- Cover both commercial (e.g., bankruptcy) and political (e.g., war or the inconvertibility of currency) risks.
- Obtain credit reports on foreign buyers (up to ten) the exporter elects to insure (these are complimentary though they remain with EXIM).
- Arrange financing through a lender by using insured receivables as additional collateral.
Benefits of Express Insurance:
- Credit management expertise: ease the burden of credit risk management by leveraging EXIM's international expertise.
- Risk reduction: safeguard against catastrophic losses from buyer nonpayment.
- Increased competitiveness: unlock the ability to offer buyers the credit necessary to expand into new markets and boost sales with existing customers.
- Improved liquidity: accelerate cash flow by borrowing against foreign receivables.
How it Works
The nuts and bolts of a policy are simpler than one might imagine.
- Policies cover both commercial and political losses at 95%.
- Insuring pre-existing foreign buyers is optional.
- There are no application fees or minimum premium. A one-time, refundable advance deposit of $500 is required to issue the policy.
- No first-loss deductible.