Single Buyer
Ex-Im Bank's Single-Buyer Credit Insurance lets you increase your export sales by limiting your international risk, offer credit to your international buyers and access working capital funds. Our insurance covers the risk of buyer nonpayment due to commercial and political reasons. It can also replace cash-in-advance, letters of credit, and other secured sales.
As the name implies, this policy covers one or more shipments totaling a set value, to a single buyer. This insurance lets us assume 90 to 100% of your nonpayment risk at a very affordable premium. 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?
Quite simply, this policy can provide:
- Risk mitigation - insure receivables against nonpayment by international buyers.
- A marketing tool - provide competitive credit terms to international buyers.
- Financing - secure additional lender financing by using insured foreign receivables as additional collateral.
Coverage: Commercial and Political Risks
This policy covers 90% of nonpayment losses due to commercial reasons (such as insolvency and protracted default) and 90% political risks (such as war, revolution, seizure of goods, revocation of import license, or the inability to convert foreign currencies).
Coverage percentage is the same for both commercial and political risks, but varies depending on the type of debtor:
-
If the foreign buyer is classified as a sovereign obligor (Foreign Ministry debtors) Ex-Im's coverage is at 100%.
-
Private sector and other non-sovereign debtors receive 90% coverage.
-
For letter of credit transactions exporters' can receive 95% coverage.
- For bulk agricultural transactions Ex-Im's coverage is at 98%.
Coverage does not include confirmed letters of credit, cash-in-advance sales, and certain military and defense-related items.
Costs
Our lower minimum premium amounts apply for exporters qualifying as a small business under U.S. Small Business Administration guidelines. Our small business minimum premiums per policy are $500.
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.
- Generally, each product must have more than 50% U.S content based on all direct and indirect costs. Review 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.
- You may insure single or multiple shipments to one buyer on credit terms (including documentary credits, unconfirmed letters of credit, and open account) located in an eligible country (see Ex-Im Bank's Country Limitation Schedule).
- As the exporter, you must specify the shipments to be covered and the length of time necessary for them to occur. The maximum policy period during which shipments can be made is one year (renewable upon request).
Small Businesses can extend repayment terms up to 180 days (depending on the export item or service); some may be extended up to 360 days for qualifying transactions.
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.
Ex-Im Bank's Single-Buyer Credit Insurance lets you increase your export sales by limiting your international risk, offer credit to your international buyers and access working capital funds. Our insurance covers the risk of buyer nonpayment due to commercial and political reasons. It can also replace cash-in-advance, letters of credit, and other secured sales.
As the name implies, this policy covers one or more shipments totaling a set value, to a single buyer. This insurance lets us assume 90 to 100% of your nonpayment risk at a very affordable premium. 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?
Quite simply, this policy can provide:
- Risk mitigation - insure receivables against nonpayment by international buyers.
- A marketing tool - provide competitive credit terms to international buyers.
- Financing - secure additional lender financing by using insured foreign receivables as additional collateral.
Coverage: Commercial and Political Risks
This policy covers 90% of nonpayment losses due to commercial reasons (such as insolvency and protracted default) and 90% political risks (such as war, revolution, seizure of goods, revocation of import license, or the inability to convert foreign currencies).
Coverage percentage is the same for both commercial and political risks, but varies depending on the type of debtor:
-
If the foreign buyer is classified as a sovereign obligor (Foreign Ministry debtors) Ex-Im's coverage is at 100%.
-
Private sector and other non-sovereign debtors receive 90% coverage.
-
For letter of credit transactions exporters' can receive 95% coverage.
- For bulk agricultural transactions Ex-Im's coverage is at 98%.
Coverage does not include confirmed letters of credit, cash-in-advance sales, and certain military and defense-related items.
Costs
Our lower minimum premium amounts apply for exporters qualifying as a small business under U.S. Small Business Administration guidelines. Our small business minimum premiums per policy are $500.
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.
- Generally, each product must have more than 50% U.S content based on all direct and indirect costs. Review 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.
- You may insure single or multiple shipments to one buyer on credit terms (including documentary credits, unconfirmed letters of credit, and open account) located in an eligible country (see Ex-Im Bank's Country Limitation Schedule).
- As the exporter, you must specify the shipments to be covered and the length of time necessary for them to occur. The maximum policy period during which shipments can be made is one year (renewable upon request).
Small Businesses can extend repayment terms up to 180 days (depending on the export item or service); some may be extended up to 360 days for qualifying transactions.
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.