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  Multi-Buyer Application

Export Credit Insurance

Multi-Buyer Policy

The Multi-Buyer Export Credit Insurance Policy affords an exporter the opportunity to expand its overseas sales by providing comprehensive credit risk protection on the short-term sale of goods to many different buyers.

The Multi-Buyer Policy can be tailored to meet the exporter's foreign receivables insurance needs.

The Multi-Buyer Policy insures export credit sales of goods and services. These exports include but are not limited to:

• Consumables.
• Agricultural commodities.
• Raw materials.
• Consumer durables.
• Spare parts.
• Services (by special policy endorsement).

Repayment terms on these exports typically range up to 180 days, although terms for agricultural commodities, fertilizer and consumer durables may be extended to 360 days by special endorsement.

The products sold must be produced or manufactured in the United States. At least half the value of the export (excluding price mark-up) must have been added by labor or materials exclusively of U.S. origin. Goods must be shipped from the United States. No value may be added to the product by the insured after export from the United States unless approved by Ex-Im Bank. Services must be performed by U.S.-based personnel in the United States or in the buyer's country.

With specific exceptions, a policy may not provide insurance for goods or services destined for military use. A policy may not insure exports to or for use in a Marxist-Leninist country unless the President of the United States has determined that insured sales to that country are in the national interest. Exports are ineligible if they result in the loss of U.S. jobs or adverse economic impact on U.S. industry. Certain chemicals, pesticides and projects which may result in adverse environmental impact are ineligible or subject to additional review

The policy insures sales made by financially viable entities such as:

• U.S. corporations, partnerships, or individuals organized or residing in the United States.
• Foreign corporations, partnerships, or individuals doing business in the United States.
• Foreign sales corporations controlled by U.S. corporations, partnerships, or individuals organized or residing in the United States.

The buyer must be a creditworthy entity located in an acceptable country. Ex-Im Bank determines the amount of any exporter's insured buyer credit authority based in part on the needs and expertise of the exporter.

The policy insures credit sales to both private and public foreign buyers.

Ex-Im Bank bases the terms and conditions of a multibuyer policy on the applicant's terms of sale, experience with export credit sales, its historical and anticipated export volume, foreign markets and the credit history of its buyers. Some policies may contain a Discretionary Credit Limit (DCL), which is an authorization to extend credit to a buyer, without prior approval from Ex-Im Bank, based on the needs and expertise of the insured. Buyers needing credit in excess of the insured's DCL authority may be covered under a policy through a Special Buyer Credit Limit (SBCL). Further, an SBCL for each buyer is necessary for a policy with no DCL or when the DCL is restricted by the Country Limitation Schedule. The SBCL covers a revolving line of credit to the buyer. After the insured receives payment for outstanding obligations, it may ship again to the buyer up to the SBCL amount within its terms and be insured. Insureds are responsible for supplying Ex-Im Bank with credit information that supports their credit judgments under a DCL and credit requests under a SBCL.

Premiums for standard short-term comprehensive multibuyer policies vary with the credit terms, exporter experience, the quality and number of buyers being insured, and the importing countries. Most policies require a minimum premium to be paid in advance atthe beginning of every policy year. Premiums for multi-buyer policies generally are paid monthly in tandem with submission of a report of shipments and premiums payable.

In general, policies cover 90 to 98 percent of the commercial risk and 90 to 100 percent of specified political risks. In addition to retaining a percentage of the risk on each transaction, the exporter also may be required to absorb a first dollar loss, called the deductible, on losses that relate to transactions insured under a given policy.

Multi-Buyer Application

For more information on Export Credit Insurance or for assistance in completing a Multi-Buyer Application, please contact us at 856-6525 or e-mail us at info@ecidany.com.