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U.S. SBA/Ex-IM Bank of the U.S. Joint Application for Working Capital Guarantee Application For Medium Term Export Credit Insurance Quotation Application
Export Credit Insurance
Single Buyer Policy
Exporters of U.S. goods and services can reduce their risks of selling abroad and expand their worldwide market by selectively insuring foreign receivables under a Short-Term Single-Buyer Policy.
In addition the exporter can, with prior approval from Ex-Im Bank, assign its rights to the amounts payable under the policy to a financial institution as collateral to obtain financing.
Coverage applies to credit sales to a single foreign buyer or export letters of credit opened by a single foreign issuing bank named in the policy declarations for goods produced and shipped or services exported from the United States during the policy period.
The policy insures U.S. exporters against export credit risks, both political and commercial. Exporters may cover single or multiple shipments under a sales contract or repetitive sales to a single foreign buyer.
The Short-Term Single-Buyer Policy insures short-term 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, consumer durables and capital equipment, may be extended to 360 days.
The products sold must be produced or manufactured in the United States. At least half the value of the exports (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.
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, the policy insures credit sales to both private and public foreign buyers, and premiums for single-buyer policies are paid in advance of shipment.
In general, policies cover 90 to 98 percent of the commercial risk and 90 to 100 percent of specified political risks. Although the exporter is required to retain a percentage of the risk on each transaction, there is no first loss deductible for single-buyer policies.
Single Buyer Application
For more information on Export Credit Insurance or for assistance in completing a Single Buyer Application, please contact us at 856-6525 or e-mail us at info@ecidany.com.