Foreign Receivables Insurance

The insurer will add up receivables for the period december 31 2015 to december 31 2016 and then divides that number by 12.

Foreign receivables insurance. Below is an example of a typical borrowing base with both uninsured domestic and foreign receivables. You can enhance your borrowing capacity and obtain more favorable financing by including your insured foreign receivables in your collateral base. The business selling has to meet certain criteria including being small as. The most well know public provider of this insurance is the export import bank of the us.

Expand sales with receivables insurance. Exporters can protect their foreign accounts receivable against a number of risks which could result in non payment. You can enhance your borrowing capacity by including more of your receivables in your collateral base. Credit insurance policy proceeds are assignable to the lender of your choice.

This service can be a great help if you are not comfortable examining the credit profile of foreign companies. Having explored the benefits of insuring domestic and foreign receivables independently in our prior posts domestic example foreign example let s now look at the benefits of insuring all receivables. If your annual receivables are 1 million the monthly average is. Export credit insurance makes your foreign a r more attractive to banks factoring companies and other asset based lenders.

A receivables insurance policy makes your a r more attractive to banks and other lenders especially if your portfolio includes concentrations of risk cross aged receivables or sales into industries outside your bank s comfort zone. The risk of foreign receivables and how insurance can help foreign receivables are the accounts receivable due and payable from a buyer located outside of the seller s country. An accounts receivable insurance policy allows companies to feel secure in extending more credit to current customers or to pursue new larger customers that would have otherwise seemed too risky. To learn more about how we can help you with export factoring review this business case.

Foreign receivables insurance is available through private insurers and public entities. In terms of business growth being able to expand outside of your business s country of origin is ideal but foreign partnerships and business endeavors come with. Export credit insurance protects a business against the risk of non payment by a foreign customer.