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Only Pay for What You Cover

Exporters of U.S. goods and services can reduce the risk of selling on credit terms by insuring their export accounts receivable with EXIM’s short-term multi-buyer export credit insurance. The Multi-Buyer Select Risk policy (MBSR) option offers a number of benefits:

  • Flexibility: exporters have the freedom to choose which export credit sales to insure by excluding select lower-risk transactions;
  • Savings: pay insurance premium only on perceived higher risk buyers/countries; and
  • Efficiency: built-in discretionary authority allows exporters to extend credit terms without prior EXIM approval.

How to Qualify

The exporter must meet the following requirements:

  • Have at least three years of operating history and a positive net worth;
  • Have at least one year of export credit experience; and
  • After any “Standard” exclusions, the MBSR portfolio must be at least 50 percent* of the exporter’s TOTAL eligible export credit sales in U.S. dollars. In addition to the “Standard” exclusions (as defined below), the exporter can select “Non-Standard” (i.e., low risk) transactions to be excluded from coverage.

*EXIM may be able to offer flexibility on portfolios that do not meet the 50 percent threshold requirement, as long as the remaining spread of risk is sensible.

Exporters are not required to have a current EXIM policy in place and may apply for the MBSR as a new customer. Current short-term multi-buyer policyholders, including small businesses, may request conversion to the MBSR policy at their policy renewal date.

HOW TO APPLY FOR MBSR COVERAGE

Exporters will need to complete the MBSR Exclusions Worksheet to determine the potential MBSR portfolio. The worksheet will require provision of total export credit sales as well as any standard and non-standard exclusions being requested. Exporters can find this worksheet via the following link: https://www.exim.gov/sites/default/files/ forms/eib18-01.pdf.

MBSR POLICY ASSIGNMENTS

Subject to approval, policy proceeds (claim payments) may be assigned to a financial institution to arrange receivables financing or to add insured foreign accounts receivable to the borrowing base.