Facilitator for Trade, Export and Finance solutions

Specialises in export credit insurance, arranges international trade finance

Export Credit Insurance

When your export business requires you to extend credit overseas, you can protect your company’s foreign receivables and be confident of getting paid with an export credit insurance policy.

WHY YOUR COMPANY NEEDS CREDIT INSURANCE

Cash in advance and letters of credit are no longer competitive terms in the international marketplace. Creditworthy foreign companies, accustomed to buying on open account from their other suppliers, are going to expect the same terms from you. Your customers in emerging markets, on the other hand, may face scarce capital and high interest rates, making it difficult or impossible to order your products without credit terms.

You need to extend competitive terms to grow your international business, but what happens if you don’t get paid? Your foreign customers could file bankruptcy, run into cash flow problems, suffer from currency devaluations, or fail to pay you for a variety of other reasons. You can protect your foreign receivables against non-payment risks with an export credit insurance policy.


WHAT RISKS ARE COVERED?

Export credit insurance protects your foreign receivables against commercial and/or political risks which could result in non-payment of your invoices. Commercial risks take the form of buyer insolvencies (e.g. bankruptcy) or protracted defaults (slow payment). These problems could occur for many reasons, such as fluctuations in demand, natural disasters, or general economic conditions in your customer’s country. Political risks include war, riots, and revolution, as well as currency inconvertibility, expropriation, and changes in import or export regulations.

All of your export receivables can be insured under one multiple-buyer policy, or in some cases you can purchase key-buyer or single-buyer coverage. Export sales of all types of products may be covered, regardless of content or where the products are manufactured. Any kind of exporter can apply for receivables insurance, including manufacturers, distributors, dealers, etc. Your foreign customers don’t need to be huge corporations or government agencies; any buyers can be considered as long as they are creditworthy, as determined by financial information, trade references, or in some cases simply your company’s own ledger experience.


HOW MUCH DOES IT COST?

Premium rates are based on the terms you extend, the spread of your buyer and country risks, and your previous export experience. The cost is low, typically a small fraction of one percent based on sales volume . . . in most cases considerably less than the fees charged for letters of credit.

Rates may be calculated as a function of your shipment volume, country and buyer credit limits, or outstanding receivables. Premiums are payable monthly, quarterly, or annually.

Whether or not you pass this incremental expense on to your customers, the price of the coverage is insignificant compared to the additional business you can win by extending competitive credit terms overseas.


WHY YOU SHOULD CHOOSE RICHARD INTERNATIONAL

 

Export Credit Insurance

When your export business requires you to extend credit overseas, you can protect your company’s foreign receivables and be confident of getting paid with an export credit insurance policy.

WHY YOUR COMPANY NEEDS CREDIT INSURANCE

Cash in advance and letters of credit are no longer competitive terms in the international marketplace. Creditworthy foreign companies, accustomed to buying on open account from their other suppliers, are going to expect the same terms from you. Your customers in emerging markets, on the other hand, may face scarce capital and high interest rates, making it difficult or impossible to order your products without credit terms.

You need to extend competitive terms to grow your international business, but what happens if you don’t get paid? Your foreign customers could file bankruptcy, run into cash flow problems, suffer from currency devaluations, or fail to pay you for a variety of other reasons. You can protect your foreign receivables against non-payment risks with an export credit insurance policy.


WHAT RISKS ARE COVERED?

Export credit insurance protects your foreign receivables against commercial and/or political risks which could result in non-payment of your invoices. Commercial risks take the form of buyer insolvencies (e.g. bankruptcy) or protracted defaults (slow payment). These problems could occur for many reasons, such as fluctuations in demand, natural disasters, or general economic conditions in your customer’s country. Political risks include war, riots, and revolution, as well as currency inconvertibility, expropriation, and changes in import or export regulations.

All of your export receivables can be insured under one multiple-buyer policy, or in some cases you can purchase key-buyer or single-buyer coverage. Export sales of all types of products may be covered, regardless of content or where the products are manufactured. Any kind of exporter can apply for receivables insurance, including manufacturers, distributors, dealers, etc. Your foreign customers don’t need to be huge corporations or government agencies; any buyers can be considered as long as they are creditworthy, as determined by financial information, trade references, or in some cases simply your company’s own ledger experience.


HOW MUCH DOES IT COST?

Premium rates are based on the terms you extend, the spread of your buyer and country risks, and your previous export experience. The cost is low, typically a small fraction of one percent based on sales volume . . . in most cases considerably less than the fees charged for letters of credit.

Rates may be calculated as a function of your shipment volume, country and buyer credit limits, or outstanding receivables. Premiums are payable monthly, quarterly, or annually.

Whether or not you pass this incremental expense on to your customers, the price of the coverage is insignificant compared to the additional business you can win by extending competitive credit terms overseas.


WHY YOU SHOULD CHOOSE RICHARD INTERNATIONAL

 

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