Quickly Minimize the Risks While Increasing Export Sales

This short-term insurance policy helps small businesses expand into new foreign markets, add new buyers, and transfer all foreign buyer credit decision making to Ex-Im Bank at an economical cost. It is a "named buyer" policy that simplifies small business access to export credit risk insurance on their foreign accounts receivable. In addition to providing payment risk protection and allowing the extension of competitive credit terms to foreign buyers, the insurance also enables small businesses to obtain lender financing of those receivables through the assignment of policy proceeds.

A streamlined online application provides a policy quote and credit decisions up to $300,000 on foreign buyers within five workdays (buyer credit requests exceeding $300,000 will require additional processing time). Insurance premiums are payable only upon an exporter's shipment, or invoice for services, to a buyer pre-approved by Ex-Im Bank. Premium rates are determined by a rate schedule based on the credit term with no differentiation based on country.

Credit reports on all buyers the exporter elects to insure are complimentary (though they remain with Ex-Im Bank). Insuring pre-existing foreign buyers is optional. There are no application fees. A $500 advance deposit is required at quotation acceptance to issue the policy. This deposit is refundable if the exporter decides to cancel the policy.

How to Qualify

Eligible Transactions

• Products must be manufactured in and shipped from the U.S. and have more than 50% U.S. content individually or by aggregating products in a single invoice. (Note: If aggregation is chosen, a Content Report must be submitted at the time of shipment detailing the nature of the U.S. and foreign content included in the invoice.) More than 50% of an exported service must be performed by U.S. employees.
• Shipments are eligible only to countries not commercially closed or legislatively prohibited by Ex-Im Bank's Country Limitation Schedule published on .
• Maximum credit terms are 180 days; up to 360 days for capital goods, bulk, unprocessed
  agricultural commodities or other qualifying transactions.

Coverage

• Commercial losses due to insolvency, bankruptcy, and default covered at 95%
• Political losses due to war, revolution, cancellation of import or export licenses, currency
  inconvertibility are all covered at 95%
• No first-loss deductible

Premium Rates and Monthly Activity Reporting

• Premium rates for private sector buyers (per $100 of gross invoice value)
• Shipments must be reported and premiums are due anytime after
  shipment but no later than the last day of the month following the
  month of shipment.

Overdue Invoices and Filing Claims

• Online overdue reports should be submitted once any buyer is past due over 90 days for more
  than $25,000. Claims may be filed no earlier than 90 days after the due date, and no later
  than 8 months after the due date. Claims are paid within 60 days of receipt of all required
  documents. Lenders are wired claim proceeds if an assignment of insurance policy proceeds
  was executed and acknowledged by Ex-Im Bank.

For More Information

Contact an Ex-Im Bank Broker or a nearby Ex-Im Bank Regional Export Finance Center:

The complete terms and conditions of the policy are set forth in the application, policy, and endorsements.