Export Credit is a specific type of financing that protects domestic businesses in the act of international export deals. ECAs – or Export Credit Agencies – offer these domestic businesses a wide variety of insurance options and various loans to ensure that they are protected when exporting goods to different countries around the world. Such protections need to be set in place in the event that commercial or political risks prevent you, the exporter, from receiving payment for goods that you sent over to be bought and paid for.
Great reduction of financial risk that’s involved – Any trade agreement has the potential for risks to be involved, and those risks are only increased when conducting trade internationally. Thankfully, export credit insurance does a great deal to reduce any sort of financial risks that is involved for your company when doing business overseas. Such risks can come in the form of slow payments, bankruptcy from the importer, political protests, and even war. Having an export credit insurance plan in place will help ensure that, no matter what happens, you will receive payment for your exported goods.
Ability to snatch up overseas working capital – Just by being a company that has some form of export credit insurance policy, you already have a much greater chance at obtaining some overseas working capital. When you have such a policy in place, your company is seen as one that has a protection plan set in place in the event of non-payments, and as a result, you have a great chance at scoring a capital loan.
Yegg Inc offer range of export credit solutions. Please contact us for more information.