Export Credit Insurance
Export Credit Insurance helps exporters expand into new international markets with confidence by protecting their accounts receivables. Insured receivables may then be borrowed against, making cash flow management easier for small businesses.* DB Schenker offers Export Credit Insurance through EXIM Bank as an approved EXIM broker.
Export Credit Insurance helps level the playing field for small business who want to increase sales by extending credit to international customers, but who are concerned about having little recourse in cases of nonpayment. Should a foreign customer declare bankruptcy, or if political factors such as wars or currency inconvertibility make collecting payment impossible, Export Credit Insurance covers claims at up to 95% of the loss.
Export Credit Insurance may also increase a small business’s borrowing power, making it possible to arrange financing using insured receivables as additional collateral.
Benefits of Export Credit 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 management expertise: ease the burden of credit risk management by leveraging DB Schenker’s international expertise.
Four Export Credit Insurance Policies to Serve You:
|Express Insurance||Small Business Multi-Buyer||Standard Multi-Buyer||Single-Buyer|
|Target Market||Small businesses new to exporting* with <$7,500,000 export credit sales and 10 or less buyers. Must have no more than five years of export credit experience||Small business exporters* with <$7,500,000 export credit sales||Experienced exporters||Any exporter desiring to insure only one buyer|
|Base Coverage||95%. Not all accounts must be covered||95%||95%||90%|
|Discretionary Credit Limits||None. EXIM approves all buyers||Yes. Amount based on exporter’s experience||Larger amounts for most experienced exporters||None. EXIM approves the one buyer|
|Deductible||None||None||Yes, amount based on exporter’s risk portfolio and experience||None|
|Premium Rate per $100
(for private sector buyers)**
|Same rates for any country risk. Based on payment terms offered to buyers.
1-60 days: $0.65
61-120 days: $1.06
121-180 days: $1.35
|Same rates for any country risk. Based on payment terms offered to buyers
1-60 days: $0.55
61-120 days: $0.90
121-180 days: $1.15
|Portfolio tailored rate with discounts for low risk country concentration and many buyers||Premium rates vary according to country of the Buyer and length of payment terms|
|Period Covered||12 months; Renewable||12 months; Renewable||12 months; Renewable||12 months|
|Claim Filing||3–8 months after due date||3–8 months after due date||3–8 months after due date||3–8 months after due date|
|Policy Issuance Fee||$500;
|Minimum $500 for first policy; waived for renewals and repeat small business customers.
Refundable if premium paid during the first year exceeds the fee
|Foreign Buyer Credit Information||Does not have to be provided by the exporter||Exporter must provide to EXIM||Exporter must provide to EXIM||Exporter must provide to EXIM|
* For businesses that meet the Small Business Administration (SBA) definition and whose three-year annual average of export credit sales are not more than $7.5 million (excluding sales to Canada and secure payment terms such as cash, letter of credit, or sight drafts). Environmental small business policyholders are exempt from the $7.5 million “exit threshold.”
** Different rates apply for letter of credit and sovereign buyers.
Why DB Schenker?
- EXIM-approved Insurance Broker
- Experience and Licensed
- Broad product portfolio with various service options to fulfill your needs
- E-tools that give you 24/7 access