Use Multi-Buyer Insurance to:
- Extend credit terms to multiple foreign customers.
- Insure against nonpayment by international buyers.
- Cover both commercial (e.g., bankruptcy) and political (e.g., war or the inconvertibility of currency) risks.
- Arrange financing through a lender by using insured receivables as additional collateral.
Benefits of Multibuyer Insurance:
- 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.
- Credit management expertise: ease the burden of credit risk management by leveraging EXIM’s international expertise.
How it Works
The nuts and bolts of a policy are simpler than one might imagine.
- Policies cover both commercial and political risks.
- There are no application fees or minimum premium. A one-time, refundable advance deposit of $500 (minimum) is required to issue the policy.
- No minimum annual premium is required.
- Standard coverage is 95% of the invoiced amount. Sovereign buyers are covered at 100%. Bulk agricultural commodity exports qualify for 98% coverage.