EXIM provides U.S. businesses with solutions to increase sales to foreign buyers. Export credit insurance allows businesses to extend open account credit terms to foreign buyers.
What Is Export Credit Insurance?
Export credit insurance is an insurance policy that protects a business’ accounts receivable against commercial and political risks, providing payment even when customers don’t. By guarding against a multitude of risks, export credit insurance equips businesses with the confidence needed to enter new markets, take on new customers, and expand sales to existing ones.
How Can Export Credit Insurance Help a Business Sell on Credit Terms?
Businesses that insure their accounts receivable make certain that, should a foreign buyer not pay, they will be reimbursed 85-95 percent of their invoice amount. As a result, businesses can confidently expand into new markets without fear of foreign buyer nonpayment.
Meanwhile, with their accounts receivable insured, U.S. businesses can leverage additional benefits of export credit insurance, including the ability to offer more flexible open account credit terms or access unrealized working capital from lenders. With working capital and insured foreign receivables, businesses can access a more consistent cash flow, allowing them to focus on what matters most: producing quality products and pursuing new sales.