Small Business Insurance
If you've got a small, financially viable business and are new to exporting--or have only occasionally exported--this product is specially tailored to you. Ex-Im Bank's Small Business Multi-Buyer Credit Insurance helps boost your export sales by extending competitive credit terms while limiting international risk. It also offers credit to your qualified international buyers, enables you to access critical working capital funds by financing your insured foreign accounts receivables.
This product provides special incentives (a simplified premium rate schedule for no first-loss deductible, all countries, and foreign credit decision making authority for experienced exporters) for qualifying small businesses (To learn more about how to be defined as a small business, go to http://www.sba.gov or call 1.800.U.ASK.SBA for more information) and can cover multiple shipments to multiple buyers. Small Business Multi-Buyer Credt Insurance can replace cash-in-advance, letters of credit, and other documentary sales.You get a low-cost, risk-reduction plan: We assume 95% of your nonpayment risk at a premium you can afford. It covers the risk of buyer nonpayment due to commercial and political risks. By limiting your risk, you'll be able to increase sales to additional international buyers and compete aggressively in global markets.
By limiting your risk, you'll be able increase sales to additional international buyers and compete aggressively in global markets.
How can I use this?
Our Small Business multi-buyer credit insurance policy is valuable as a:
- Risk reduction tool - insures receivables against nonpayment by foreign buyers.
- Marketing tool - extends competitive credit terms to foreign buyers.
- Financing aid - you can arrange attractive financing through your lender by using insured foreign receivables as additional collateral.
This product insures 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. It may be renewed annually, and gives your buyers up to 180 days to pay you back, and in certain cases, we can approve 360 day terms-of-credit for certain purchases (such as capital equipment and bulk, unprocessed agricultural commodities). Special incentives are offered for small business exporters of specified environmentally-related products and services.
Excluded from coverage are confirmed letters of credit, cash-in-advance sales, and certain military and defense-related items.
Types and Percentage of Losses Covered
Commercial (insolvency, bankruptcy and protracted default) and political losses (war, revolution, cancellation of an import/export license, or inability to convert currency) are covered at 95%.
Costs
Small Business premiums are paid according to a rate schedule and depend on the credit term extended and the buyer type see our rate schedule for more information. This product requires no advance premium to issue a policy, and there is no minimum premium. “Pay-After-You-Ship” premiums require that shipments be reported and premiums paid no later than 30 days after the month of shipment. Our small business credit insurance has the same rate applied to any Ex-Im Bank covered country. A rate of $0.55 per $100 is charged for 60 days credit terms.
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 the U.S. export.
Together with any parent company, subsidiaries, or affiliates, the exporter must:
- Be a small business as defined by the Small Business Administration.
- Have export credit sales (average from the preceding three years) not exceeding $7.5 million.
- Have at least one year successful operating history and a positive net worth.
- Have products 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 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.
If you've got a small, financially viable business and are new to exporting--or have only occasionally exported--this product is specially tailored to you. Ex-Im Bank's Small Business Multi-Buyer Credit Insurance helps boost your export sales by extending competitive credit terms while limiting international risk. It also offers credit to your qualified international buyers, enables you to access critical working capital funds by financing your insured foreign accounts receivables.
This product provides special incentives (a simplified premium rate schedule for no first-loss deductible, all countries, and foreign credit decision making authority for experienced exporters) for qualifying small businesses (To learn more about how to be defined as a small business, go to http://www.sba.gov or call 1.800.U.ASK.SBA for more information) and can cover multiple shipments to multiple buyers. Small Business Multi-Buyer Credt Insurance can replace cash-in-advance, letters of credit, and other documentary sales.You get a low-cost, risk-reduction plan: We assume 95% of your nonpayment risk at a premium you can afford. It covers the risk of buyer nonpayment due to commercial and political risks. By limiting your risk, you'll be able to increase sales to additional international buyers and compete aggressively in global markets.
By limiting your risk, you'll be able increase sales to additional international buyers and compete aggressively in global markets.
How can I use this?
Our Small Business multi-buyer credit insurance policy is valuable as a:
- Risk reduction tool - insures receivables against nonpayment by foreign buyers.
- Marketing tool - extends competitive credit terms to foreign buyers.
- Financing aid - you can arrange attractive financing through your lender by using insured foreign receivables as additional collateral.
This product insures 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. It may be renewed annually, and gives your buyers up to 180 days to pay you back, and in certain cases, we can approve 360 day terms-of-credit for certain purchases (such as capital equipment and bulk, unprocessed agricultural commodities). Special incentives are offered for small business exporters of specified environmentally-related products and services.
Excluded from coverage are confirmed letters of credit, cash-in-advance sales, and certain military and defense-related items.
Types and Percentage of Losses Covered
Commercial (insolvency, bankruptcy and protracted default) and political losses (war, revolution, cancellation of an import/export license, or inability to convert currency) are covered at 95%.
Costs
Small Business premiums are paid according to a rate schedule and depend on the credit term extended and the buyer type see our rate schedule for more information. This product requires no advance premium to issue a policy, and there is no minimum premium. “Pay-After-You-Ship” premiums require that shipments be reported and premiums paid no later than 30 days after the month of shipment. Our small business credit insurance has the same rate applied to any Ex-Im Bank covered country. A rate of $0.55 per $100 is charged for 60 days credit terms.
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 the U.S. export.
Together with any parent company, subsidiaries, or affiliates, the exporter must:
- Be a small business as defined by the Small Business Administration.
- Have export credit sales (average from the preceding three years) not exceeding $7.5 million.
- Have at least one year successful operating history and a positive net worth.
- Have products 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 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.