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Ex-Im Bank Financial Institution Supplier Credit Multi-Buyer Insurance Policy

Summary

The Financial Institution Supplier Credit Multi-Buyer Policy protects lenders financing (to include purchasing) the export receivables of small businesses on a non-recourse basis. Qualified policyholders may be given delegated authority to approve exporters for participation under the policy. Policyholders may also be given Discretionary Credit Limits to approve many of the buyers that exporters elect to finance. The largest buyer credit limits would be submitted to Ex-Im Bank for approval. The policy is available in documentary and non-documentary formats. There is no "whole turnover" requirement under the policy. The policyholder selects the exporters for approval under the policy. The policyholder must, however, insure all the export receivables it finances from those exporters approved under the policy. The policyholder may choose to exclude certain of the exporter's buyers from the policy by not offering to finance those buyers' receivables. Likewise, the exporter may choose to exclude certain buyers from the policy by not requesting financing from the insured financial institution. Premiums would not be owed on non-financed sales. The policy may be referred to as the "FISC" policy but has the prefix EBS and EBM.

Eligible Financial Institutions

- Minimum 3 years financing or purchasing export or domestic receivables.
- Minimum short-term debt ratings of: Standard + Poors “A” or better, or Moody’s “P-2” or better.
- Written business plan to finance or purchase export receivables including identifying sufficient credit
management and staffing resources to process large transaction volumes.

Comparison of Policy Formats

Documentary Policy (EBM)

Non-Documentary Policy (EBS)

Eligible Exporters

- SBA small business*

- average annual export credit sales for prior 2 years is less than $5,000,000 (excludes cash-in-advance and confirmed L/C sales).

- SBA small business*

Exporter Certificate

Required. Exporter provides representations regarding U.S. content and shipping requirements.

Not required. Financial institution accepts responsibility for representations made by exporter.

Documentary Cover Feature

If properly authorized representations exist within Exporter Certificate(s), and other documents are in compliance with policy requirements, claims may be paid regardless of: fraud in underlying transaction; dispute in underlying transaction; non-shipment of goods; or shipment of non-U.S. goods.

N/A

* “Small business” is defined in the Small Business Administration’s Regulations Part 121 based on either sales or number of employees according to the exporter’s Standard Industrial Code. Determination of “small” includes any affiliates.

What is covered:

Financed amount of Gross Invoice Value (including shipping, insurance & interest if specified) and financing interest.

Same

Percentage of Coverage:

Sovereign Public Sector Obligors	100%	Same
Political Risks	100%	90%
Commercial Risks	95%	90%
Approved Agricultural Commodities	98%	Same

Letter-of-Credit Transactions

Excluded; use Bank Letter of Credit Policy

Same

Deductible

None

Same

Discretionary Credit Limit (Buyer)

Amount underwritten per policyholder

Same

Uninsured Retention

The insured must remain at risk uninsured and unsecured

Same

Recourse to Exporter

Limited to amounts non-compensable under the policy (excludes retention).

Same

Policy Period

One year; renewable

Same

Premium Rates

Small Business Policy Rate Schedule
Payable per $100 of financed amount.

Market-Based Single-Buyer Rates
Same

Report Financings

Due with premium by 30th of month following the month when exporter’s shipment occurred.

Same

Minimum Annual Premium
no minimum premium per exporter

$2,000, or none if non-documentary if policy also purchased

$2,000, or none if documentary policy also purchased

Advance Premium

$2,000, or none if non-documentary policy also purchased

$2,000, or none if documentary policy also purchased

Maximum Interest Rate Cover*:

Rate contracted in financing agreement. No penaly interest.

The lesser of:
1. Rate on the buyer obligation,
2. legal rate in country of importation, or
3. for US dollars, WSJ prime less 0.5%

Post-Maturity Interest:

Covered up to 180 days after default as above.

Same

* There are no limitations on the interest charged but normal commercial rates are expected.

Claim Filing Window

90 to 240 days from due date.

Same

Claim Payment

Within 60 days of claim receipt if documents are in compliance with all policy terms and conditions.

Within 60 days of claim receipt if transaction is in compliance with all policy terms and conditions.

Information Requirements for Delegated Authority to Approve Exporters

Please refer to specimen copy of Ex-Im Bank's "Endorsement for Delegated Authority to Approve Exporters."

Same

Ex-Im Bank retains the sole authority N/A to qualify exporters for documentary coverage. See Ex-Im Bank’s Short-Term Credit Standards (EIB99-09) - Exporter Credit Standards for information requirements to qualify for documentary coverage.

N/A

Information Requirements for Buyer Credit Approval:

- Discretionary Credit Limit (DCL)

Please see specimen copy of Ex-Im Bank's Discretionary Credit Limit Endorsement.

- Special Buyer Credit Limit (SBCL) Application for amounts and terms not covered by DCL

Refer to Ex-Im Bank's published Short-Term Credit Standards (EIB99-09) - Buyers. Depending on the amount of the credit limit; a credit report, a bank reference, one or two trade references and two or three years' financial statements are required.

Accessing Information on this Policy

Specimen copies of policy documents, forms, and credit information requirements including Ex-Im Bank's Short-Term Credit Standards are available in Ex-Im Bank's Website www.exim.gov.

More Information

Headquarters
U.S. Toll Free Number
Worldwide Number
Trade Finance & Insurance
Internet

(800) 565.3946 (EXIM)
(202) 565.3946
Refer to Contact Us section of web site
http://www.exim.gov

This is not a solicitation by the Export-Import Bank of the United States or its employees. It is a descriptive summary only. The complete terms and conditions of the policy are set forth in the policy, applications and endorsements.

EIB-00-03 (2/01)