Medium-Term Credit Insurance Policy
The Medium Term Credit Insurance Policy insures the repayment of the sale of capital equipment and other products that require extended repayment terms. Medium Term is defined as selling terms from 1 – 7 years. Companies or Banks choose the Medium Term Credit Insurance Policy as a means to mitigate the risk of non payment for their extended buyer credit exposures. This policy can cover a single sale transaction or multiple sales to a specific qualified buyer. The Medium Term Credit Insurance Policy provides companies with an excellent solution for offering attractive credit terms while mitigating catastrophic credit losses. When Insured, the Medium Term Credit Insurance Policy can be used as collateral (and assigned to a bank or other financial institution) to obtain attractive financing.
Policy Characteristics
Characteristics of the Medium Term Credit Insurance Policy are as follows
• Financing terms 1 to 7 years
• Some down payment may be required (up to 15%)
• Financed portion (85%)
• Comprehensive coverage “Failure to Pay” coverage
• Principal and interest is covered
• Documentation controlled by the Insured
• Unconditional, valid and enforceable debt obligation (p-note)
• Invoice showing amount shipped
• Bill of lading showing goods were shipped
• Eximbank exporter's certificate (when necessary)
Contact EIA-Global and apply now for your Trade Credit Insurance & Export Insurance needs - your cost effective way to protect against the risk of non-payment of your trade account receivables.
