Guide to Export Credit Insurance
For U.S. businesses, international markets can represent both tremendous opportunity and daunting risk. The Export-Import Bank of the United States' (EXIM) Export Credit Insurance equips U.S. companies to win international sales while taking risk out of the export equation.
While businesses are well acquainted with the concept of insurance and the importance of managing risk, accounts receivable are often the largest uninsured asset on a company’s balance sheet. Export Credit Insurance allows exporters to safeguard their foreign receivables, transferring the risk of nonpayment by overseas customers to EXIM. Like any insurance policy, the exporter pays a premium and gets protection in return. In this case, if a foreign buyer purchases on credit terms and fails to pay, EXIM pays the exporter up to 95% of the invoice value.
The nuts and bolts of a policy are simpler than one might imagine. This guide offers a snapshot of the value, process, and applicability of EXIM’s Export Credit Insurance options, including:
- Introduction to Export Credit Insurance
- The Value of an Export Credit Insurance Policy
- How Export Credit Insurance Works
- Case Study: Los Kitos Produce
- EXIM Eligibility and Regulations
- Pricing Details on Small Business Multi-buyer Polices and Express Insurance
Paper contributed by EXIM