Short-Term Multi-Buyer Account Credit Insurance Policy
The Short Term Multi-Buyer Account Credit Insurance Policy allows the policyholder to insure an entire portfolio of buyers. Companies choose Short Term Multi-Buyer Account Policy as a means to mitigate the risk of non payment for all of their credit exposures. This policy can cover multiple sales, multiple buyers and multiple countries made during a twelve month period. This policy can be written for Domestic buyers (companies billed within the United States) as well as Export buyers (companies billed outside the United States). The Short Term Multi-Buyer Account Policy provides companies with an excellent solution for mitigating catastrophic credit losses.
Policy Characteristics
The characteristics of a Short Term Multi-Buyer Account Policy are as follows:
• This policy insures a portfolio of exposures
• Coverage is for Commercial Risk and Political Risk, including Protracted Default
• There may or may not be a Deductible depending upon the structure of the policy
• Discretionary credit authority to approve 80% to 90% of your accounts
• Typical Indemnification Rate is 90% or 95% (98% for bulk agriculture) which means policyholder will retain 5% or 10% of the risk
• Premium rates are risk weighted and can be negotiated with the private insurance market or are obtained from an on-line rate schedule issued by The Export-Import Bank of the United States (EXIM) specifically for their insurance programs
• Eligible Sales terms are up to net 180 days for all products and 181 to 360 days for capital equipment, quasi-capital equipment, and bulk agricultural products
• Up to a 12 month policy period
• Policy can cover Multiple currencies
• Policy allows for an “Assignment of proceeds” for enhanced bank borrowing
• Minimum premiums vary but typically start at $2,500
• Policies offer reasonably short waiting periods (90 days) for claim filing
Buyer Profile
The profile of Short Term Multi-Buyer Account Buyers may include:
• Multiple sales, multiple buyers, multiple countries
• 95% indemnity of political & commercial exposure, including protracted default
• Risk weighted premium
• Discretionary credit authority to approve 80% to 90% of your accounts
• Pay-as-you-go premium
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.
