Overview

EXIM’s Single Buyer Insurance is designed for exporters that do not want to insure their exports to all their eligible foreign buyers, and instead want to insure sales to a single foreign buyer under one policy. The exporter may have multiple single buyer policies covering different foreign buyers. Single buyer insurance is available to exporters of all sizes.

Use Single-Buyer Insurance to:

• Extend credit terms to select foreign customers.
• Insure against nonpayment by an international buyer.
• Cover both commercial (e.g., bankruptcy) and political (e.g., war or the inconvertibility of currency) risks.
• Arrange financing through a lender by using insured receivables as additional collateral.

Benefits of Single-Buyer Insurance:

• Risk reduction: safeguard against catastrophic losses from buyer nonpayment.
• Increased competitiveness: unlock the ability to offer buyers the credit necessary to expand into new markets and boost sales with existing customers.
• Improved liquidity: accelerate cash flow by borrowing against foreign receivables.
• Credit risk management expertise: ease the burden of credit risk management by leveraging EXIM's international expertise.
• Flexibility: Select specific foreign customers to insure rather than your whole export portfolio.

How it Works

The nuts and bolts of a policy are simpler than one might imagine.

• Policies cover both commercial and political risks.
• Coverage of 90% for private buyers and 100% for sovereign buyers. Bulk agricultural commodity exports qualify for 98% coverage.
• No first loss deductible and no application fee.
• Minimum premium of $500 for eligible small businesses; minimum premiums range from $750 - $2,500 for non-small business exporters.
• No minimum premium is required to renew the limit.
• Minimum premiums can be waived if there is recent utilization under prior recent policy(ies).
• Subject to approval, policy proceeds (claim payments) may be assigned to a financial institution to arrange receivables financing or to add insured foreign accounts receivable to the borrowing base.