EXIM’s Multi-Buyer Small Business Insurance is for small businesses that meet the Small Business Administration (SBA) small business definition but do not otherwise qualify for Express Insurance. This policy is designed for exporters that choose to have their whole international portfolio of customers insured.

Use Multi-Buyer Small Business Insurance to:

  • Extend credit terms to an unlimited number of foreign customers
  • Insure against nonpayment by international buyers
  • 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 Small Business Multi-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
  • Flexibility: Meet international sales orders in a timely manner with the potential for discretionary decision making tools

How it Works

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

  • Policies cover both commercial and political risks at 95%
  • Sovereign buyers are covered at 100%. Bulk agricultural commodity exports qualify for 98% coverage
  • There are no application fees or annual minimum premium. A one-time, refundable advance deposit of $500 is required to issue the policy
  • No first-loss deductible
  • Fixed premium rates are based on the payment terms of the sale regardless of the buyer’s country
  • Discretionary Credit Limits available, allowing the exporter to ship to buyers up to pre-approved limits without seeking EXIM prior approval
  • 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