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Multi-Buyer Export Credit Insurance

Exporters of U.S. goods and services can reduce their risk of selling on credit terms by insuring their export accounts receivable with Ex-Im Bank’s Short-Term Multi-Buyer Export Credit Insurance. The policy can help them increase their international sales by extending competitive credit terms while minimizing risks, and is valuable as a:

Coverage

This policy covers losses due to commercial reasons (such as bankruptcy and protracted default) and political events (such as war, revolution, seizure of goods, revocation of import license, and foreign exchange inconvertibility).  Standard coverage is 95% of the invoiced amount.

Two coverage options are available. The exporter's selection applies to their entire portfolio for the policy period:

Coverage for approved, bulk agricultural commodities is 98%, and coverage for sovereign obligors is 100%.

For an additional premium, the exporter may request pre-shipment coverage. This is valuable in cases where goods are special ordered, or there is a long manufacturing run prior to shipment. By selecting this extra option, the exporter locks in coverage conditions for a specified period of time (generally up to 180 days from contract signing). Pre-shipment coverage excludes contract cancellation risk. Endorsements for non-acceptance cover and other types of specialized cover are also available.

Coverage Parameters

• Exports of U.S. goods and services (products must have at least 51% U.S. content, including labor but excluding mark-up)
• All shipments on credit terms (including documentary credits, unconfirmed letters of credit and open account) to all eligible countries during the policy period, generally one year. The policy may be renewed annually.
• Repayment terms may be up to 180 days and exceptionally up to 360 days for qualifying transactions.
• Excluded are confirmed letters of credit, cash-in-advance sales, and certain military and defense-related items.
• Exporters can also obtain a political risk only policy.

Premium Rates and Payments

Premium rates are calculated based on several factors, including length of terms offered, buyer type, spread of country risk, transaction type, and previous export experience.

• Shipments are reported, and premium paid, on a monthly basis. Reports are due to Ex-Im Bank by the 30th of the month following the month of shipment.
• A one-time, refundable advance premium of a $500 minimum is required to issue the policy.
• No minimum annual premium.

Credit Limits

• Credit limits in this policy allow the exporter to extend insured credit without prior approval from Ex-Im Bank.
• The exporter must obtain credit information on the buyer to show its creditworthiness.
• Limits are granted in accordance with the exporter's experience.
• Ex-Im Bank must pre-approve amounts over the credit limit in the policy and in certain countries (as noted in the Country Limitation Schedule - see www.exim.gov).

Overdue Invoices and Filing Claims

• The exporter must report monthly all insured buyers past due over 90 days on amounts over $100,000 for as long as the overdue situation exists, or until a claim is filed.
• Claims may be filed no earlier than 90 days after the due date, and no later than 240 days after the due date.
• Claims are paid within 60 days of receipt of all required documents (faster when filed on-line).

Policy Assignments

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

Page Updated: April 7, 2007