Short-Term
Multi-
Buyer / Single-Buyer Policy
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Purpose
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To assist U.S. exporters increase international sales by extending open account payment terms to foreign buyers of consumer goods, materials, services, small capital goods, consumer durables, and bulk commodities
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Policy Period
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12 months (renewable upon request)
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Coverage Eligibility
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- Single-Buyer - single or multiple shipments to one buyer on credit terms (documentary collections, unconfirmed letters of credit, and open account credit terms)
- Multi-Buyer - multiple foreign buyers on credit terms (documentary collections, unconfirmed letters of credit, and open account credit terms)
- Repayment terms up to 180 days depending on the export item or service; exceptionally up to 360 days for qualifying transactions such as capital equipment and bulk unprocessed agricultural commodities
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Coverage Risks
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- Covers commercial losses – insolvency of the buyer, bankruptcy or default, and political losses – war, terrorism, revolution, nationalization, currency inconvertibility, etc.
- Percentage of coverage: 100% sovereign obligors, 90% private sector and non-sovereign obligors, 95% letter of credit transactions, 98% bulk agricultural transactions
- For an additional premium, the exporter may request pre-shipment coverage
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Premium Rates
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- Determined by several factors including: length of terms offered, buyer type, spread of country risk, transaction type, and previous export experience
- Often incorporated into the selling price
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Medium-Term Policy
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Purpose
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To promote the sale of U.S. capital equipment, its installation and a complement of spare parts if necessary
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Repayment
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1 to 5 years (exceptionally 7 years) and for amounts up to $10 million
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Coverage Eligibility
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- Single Sales – one time transactions; and Repetitive Sales – ongoing relationships, generally between an exporter and a dealer or distributor
- A minimum cash advance payment of 15% of the export contract value is to be paid by the buyer before the starting point of the credit
- Sales to dealers or others for resale are limited to maximum credit terms of 2 years
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Coverage Risks
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- Covers commercial losses and political losses
- Covers 100% of the 85% financed portion of the U.S. contract price
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Premium Rates
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Calculated on the financed portion of the medium-term shipments made during the period
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This is not an export insurance coverage policy. It is a descriptive summary of the indicative policy parameters. The complete terms and conditions of the policy are set forth in the policy, applications, and endorsements
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