Multi Buyer
Exporters of U.S. products and services can increase international sales and 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 is valuable as a:
-
Risk Mitigation Tool - insure export accounts receivable against non-payment
-
Marketing Tool - extend competitive credit terms to international buyers
-
Financing Aid - insured receivables collateralize your lender and help you obtain financing
Coverage
This policy covers non-payment losses due to commercial reasons (bankruptcy, protracted default) and political events (war, revolution, government seizure of goods, revoked export or import licenses, and foreign exchange inconvertibility) Standard coverage is 95% of the invoiced amount. Sovereign buyers are covered at 100%. Bulk agricultural commodity exports qualify for 98% coverage. Product non-acceptance coverage is 60% and available on most products.
Pre-Shipment coverage (95%) is available for an additional premium and locks in coverage conditions for up to 180 days from contract signing. This optional coverage typically is useful to manufacturers producing made-to-order products requiring long lead times. Pre-Shipment coverage excludes contract cancellation risk.
Coverage Parameters:
- For non-small business exporters, exports of each U.S. manufactured product and/or service must have more than 50% U.S. content, including labor and materials, but excluding mark-up.
- For small businesses, each product must have more than 50% U.S. content based on all direct and indirect costs, exclusive of profit.Small business exporters may aggregate items in a single invoice to meet this requirement or receive partial coverage for the U.S. content only. For more information on content eligibility, please refer to the Ex-Im Bank short-term content policy.
- All U.S. exported products must be shipped from the U.S. to the foreign buyer.
- All credit term shipments on non-excluded transactions in eligible countries made during the one-year policy period must be reported. Policies are renewable annually.
- Repayment terms may be up to 180 days; exceptionally up to 360 days for qualifying transactions.
- Cash-in-Advance, Confirmed Letter of Credit and military or defense-related item sales are excluded. Additional exclusions can be considered for endorsement.
- Political-Risk Only option is available.
Premium Rates and Payments
Tailored premium rates are calculated based on the spread of credit terms, countries, buyer and transaction types, and previous export credit experience.
- 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.
- A one-time, refundable advance premium of at least $500 is required to issue the policy. No Advance Premium is due from small businesses (as designated by the Small Business Administration)
- No minimum annual premium
Buyer Credit Limit Approval
- Ex-Im Bank may give qualified exporters authority to make many small credit decisions
- Ex-Im Bank must pre-approve amounts above the qualified exporter's delegated authority or if that authority is restricted in certain countries ( as noted in the "Country Limitation Schedule")
- The exporter must obtain credit information to support the buyer's creditworthiness
Overdue Receivables and Filing Claims
- The exporter must report and update monthly all insured buyers past due over 90 days on amounts exceeding $25,000 for as long as the overdue persists or until a claim is filed
- 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 (faster if 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 receivables to the borrowing base.
An enhanced assignment, protecting account receivable lenders from exporter performance risks, is available to qualified small businesses only.
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.
Exporters of U.S. products and services can increase international sales and 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 is valuable as a:
-
Risk Mitigation Tool - insure export accounts receivable against non-payment
-
Marketing Tool - extend competitive credit terms to international buyers
-
Financing Aid - insured receivables collateralize your lender and help you obtain financing
Coverage
This policy covers non-payment losses due to commercial reasons (bankruptcy, protracted default) and political events (war, revolution, government seizure of goods, revoked export or import licenses, and foreign exchange inconvertibility) Standard coverage is 95% of the invoiced amount. Sovereign buyers are covered at 100%. Bulk agricultural commodity exports qualify for 98% coverage. Product non-acceptance coverage is 60% and available on most products.
Pre-Shipment coverage (95%) is available for an additional premium and locks in coverage conditions for up to 180 days from contract signing. This optional coverage typically is useful to manufacturers producing made-to-order products requiring long lead times. Pre-Shipment coverage excludes contract cancellation risk.
Coverage Parameters:
- For non-small business exporters, exports of each U.S. manufactured product and/or service must have more than 50% U.S. content, including labor and materials, but excluding mark-up.
- For small businesses, each product must have more than 50% U.S. content based on all direct and indirect costs, exclusive of profit.Small business exporters may aggregate items in a single invoice to meet this requirement or receive partial coverage for the U.S. content only. For more information on content eligibility, please refer to the Ex-Im Bank short-term content policy.
- All U.S. exported products must be shipped from the U.S. to the foreign buyer.
- All credit term shipments on non-excluded transactions in eligible countries made during the one-year policy period must be reported. Policies are renewable annually.
- Repayment terms may be up to 180 days; exceptionally up to 360 days for qualifying transactions.
- Cash-in-Advance, Confirmed Letter of Credit and military or defense-related item sales are excluded. Additional exclusions can be considered for endorsement.
- Political-Risk Only option is available.
Premium Rates and Payments
Tailored premium rates are calculated based on the spread of credit terms, countries, buyer and transaction types, and previous export credit experience.
- 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.
- A one-time, refundable advance premium of at least $500 is required to issue the policy. No Advance Premium is due from small businesses (as designated by the Small Business Administration)
- No minimum annual premium
Buyer Credit Limit Approval
- Ex-Im Bank may give qualified exporters authority to make many small credit decisions
- Ex-Im Bank must pre-approve amounts above the qualified exporter's delegated authority or if that authority is restricted in certain countries ( as noted in the "Country Limitation Schedule")
- The exporter must obtain credit information to support the buyer's creditworthiness
Overdue Receivables and Filing Claims
- The exporter must report and update monthly all insured buyers past due over 90 days on amounts exceeding $25,000 for as long as the overdue persists or until a claim is filed
- 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 (faster if 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 receivables to the borrowing base.
An enhanced assignment, protecting account receivable lenders from exporter performance risks, is available to qualified small businesses only.
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.