In developing markets, the ability to offer credit terms is often times more important than price or product features. Export Credit Insurance provides protection against the risk of default allowing exporters to safely extend credit to foreign buyers.
As licensed credit insurance providers, we are able to obtain credit insurance through Ex-Im bank and the private-market credit insurers to cover these risks for our exporters. This allows exporters we work with to ship goods on open or extended credit terms to foreign companies in emerging markets and benefit from potentially very profitable markets while mitigating foreign commercial and political risks.
Use export credit insurance to extend payment terms that make it more economical for your foreign customers to purchase larger quantities.
Export Credit insurance provides protection against the risk of default, allowing you to safely extend credit to foreign buyers..
Offer competitive credit terms to your international distributors. Provide incentives to keep more of your products in their country’s supply chain, increasing your market share and local brand recognition..
Which your company might otherwise perceive as too risky for extending international credit terms without accounts receivable insurance. The opportunity to establish market share in emerging economies has never been greater.
Enhance your borrowing capacity and obtain more favorable financing by including your insured export receivables in your collateral base. Foreign credit insurance makes your international A/R more attractive to banks and other asset-based lenders. You can assign export receivables insurance policy proceeds to the lender of your choice.
Accounting standards allow for income from credit-insured sales to be recognized when the sale is made and not when you get paid. Credit insurance improves cash flow, reduces days sales outstanding and reserves for bad debts and improves return on assets.
Strengthen your balance sheet and keep your company’s financial position secure with foreign credit insurance, despite exposure to unforeseen events, concentrations of export receivables risks, and changing international market conditions.
Here are the benefits to Foreign Buyers:
– Export Credit Insurance can help your company access foreign goods and capital equipment on open credit terms.
– As a foreign customer you are now able to access extended and open credit terms from U.S companies.
– Even if your access to capital is limited, you are still able to get access to foreign goods and capital equipment.
– You are better able to access better repayment terms and interest rates as interest rates in your country may be very high.
– Strengthens your relationships with foreign suppliers.