Standard Multi-Buyer Credit Insurance

You can reduce the risk of selling internationally on credit terms by insuring your export accounts receivable with our Standard Multi-Buyer Credit Insurance. Ex-Im Bank's policy not only helps boost your export sales by extending competitive credit terms while limiting international risk, it also offers credit to your international buyers and enables you to access critical working capital funds.

This insurance lets us assume 95% of your nonpayment risk at a premium you can afford.
It covers the risk of buyer nonpayment for commercial purposes as well as certain political risks, such as the inability to convert currency, bankruptcy, protracted default, or war. It can also replace cash-in-advance, letters of credit, and other documentary sales.

Limiting your risk means you'll be able increase sales to additional international buyers and compete aggressively in global markets.

How Can I Use This?

This policy allows you to offer qualifying international buyers attractive terms of credit.
Our standard multi-buyer credit insurance policy is valuable as a:

• Risk reduction tool to insure receivables against nonpayment by foreign buyers.
• Marketing tool extending competitive credit terms to foreign buyers.
• Financing aid allowing you to arrange attractive financing with your lender by using insured foreign receivables as additional collateral.

This policy lets you offer competitive credit terms to your foreign buyers with minimal risk, it provides flexibility by covering multiple countries, buyers and transactions, and discretionary credit limits may be available.

The policy insures all shipments on credit terms (including documentary credits, unconfirmed letters of credit and open account) to eligible countries during the policy period--generally one year--and may be renewed annually. It gives your buyers up to 180 days to pay you back, and in certain cases, we can approve 360-day terms of credit for qualifying transactions (such as capital equipment and bulk, unprocessed agricultural commodities). Excluded from coverage 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.

Coverage: Commercial and Political Risks

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 inability to convert foreign exchange). Standard coverage is 95% of the invoiced amount.

Two coverage options are available. As an exporter, your selection applies to your entire portfolio for the policy period:

1. Coverage for approved, bulk agricultural commodities is 98%, and coverage for foreign ministries of finance (sovereign obligors) is 100%.
   
   
2. For an additional premium, the exporter may request pre-shipment coverage. This is valuable in cases where goods are special ordered, or when 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.

Costs

Premium rates are calculated on several factors, including length of terms offered, buyer type, spread of country risk, transaction type, and previous export experience, and can be customized premium rates based on your risk portfolio. A one-time, refundable advance premium of a $500 minimum is required to issue the policy, and there is no minimum annual premium. Shipments are reported, and premiums paid, on a monthly basis. Reports are due to Ex-Im Bank by the 30th of the month following the month of shipment. Instead of a monthly you pay an after-you-ship premium, due after you've made an overseas shipment. This policy does have a first-loss deductible.

Eligibility Criteria

To determine eligibility of goods and services exported by small businesses, applicable U.S. content consists of direct costs (i.e., labor, materials, and direct overhead) and indirect costs (e.g., research and development) associated with the production of your U.S. export.

• Products must be shipped from the U.S. to a foreign buyer.
• Generally, each product must have more than 50% U.S content based on all direct and indirect costs. See our Ex-Im Content Policy for more information.
• Ex-Im Bank cannot support exports of military or defense products and services (with some exceptions), nor can we support purchases made by military buyers.

Getting Started

Please visit the nearest Ex-Im Bank office for a free consultation with an Export-Import Bank Trade Finance Manager, call 202-565-3946 or email us at info@exim.gov.

If you would like to know more about the application process and apply on line, REVIEW THE PROCESS OVERVIEW HERE.

Other Products

Working Capital Guarantee
Single-Buyer Credit Insurance
Small Business Multi-Buyer
Credit Insurance
Medium-Term Credit Insurance
Medium and Long-Term Loan
Guarantee

Special Support

Success Stories

$39M export deal means business, jobs for U.S. companies

Ex-Im's $1.7M insurance policy helps get U.S. goods to Brazil

$7M Egypt deals helps manufacturer get back on track

$1.6M Ex-Im help has manufacturer busy, looking for more workers

New Products

Ex-Im Bank is offering new products to enable more U.S. small and mid-sized businesses to be competitive internationally and create more jobs by exporting more goods and services to more customers in more countries.

Tools

Export-Import Bank has a number of helpful and necessary tools to assist in the application process.