Short-Term Single Buyer Credit Insurance Policy
The Short Term Single Buyer Credit Insurance Policy (also known as STSB) allows the policyholder to insure one buyer. A company chooses a Short Term Single Buyer Policy as a means to mitigate the risk of non payment from one large credit exposure. This policy can cover single or multiple shipments during a twelve month period. This policy can be written for Domestic sales (companies billed within the United States) as well as Export sales (companies billed outside the United States). The Short Term Single Buyer Policy provides companies with an excellent solution for mitigating a catastrophic credit loss.
Policy Characteristics
Some characteristics of a Short Term Single Buyer Policy are as follows:
• This policy can insure one or more shipments to a single buyer
• Coverage is for Commercial Risk and Political Risk
• Typically there is no Deductible
• The Indemnification Rate is generally 90% (98% for bulk agriculture) which means the policyholder will retain 10% of the Insured risk
• Premium rates 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 currency
• 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
Profile
The profile of Short Term Single Buyer may include:
• One or more shipments to a Single Buyer
• Premium based on approved credit line
• Up to 180 day open account Sales terms
• 90% Indemnity rate (98% Bulk Agriculture)
• Multi-Currency
• Reasonably short Waiting period for claim filing
• Up to 12 month policy period
• Minimum Premiums
• Assignment of Proceeds
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.
