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.