Export-related short-term trade credit insurance
EXPORT WITHOUT RISKS
WHAT OPPORTUNITIES DOES EXPORT-RELATED SHORT-TERM TRADE CREDIT INSURANCE OFFER?
- Making secure transactions in international markets, protecting exporters from the risk of non-payment by a foreign buyer
- Provides access to trade financing without collateral and improves cash flow
- Enables gaining competitive advantages, increasing sales volumes, and expanding into new markets by offering buyers deferred payment terms
- Creates a trustworthy environment for entering new markets and working with new foreign buyers.
WHAT RISKS ARE COVERED BY EXPORT-RELATED SHORT-TERM TRADE CREDIT INSURANCE?
1. Commercial Risks
- Bankruptcy or insolvency of the foreign buyer
- Refusal of payment by a foreign buyer without legal basis
2. Political Risks
- Administrative decisions or legal acts that result in the impossibility of payment or currency transfer
- Political events and natural disasters that lead to restrictions or inability to make payments.
WHAT ARE THE MAIN TERMS OF EXPORT-RELATED SHORT-TERM TRADE CREDIT INSURANCE?
- Insurance period: up to 2 years (coincides with the buyer's deferred payment terms stipulated in the contract)
- Waiting period*: 30–180 days
- Non-refundable amount*: 5% - 25%
- Insurance premium: calculated by applying the insurance rate to the insured amount
- Insurance rate*: 0.55% – 1.90%
*Insurance terms are determined based on the financial situation of the foreign buyer, the history of cooperation between the exporter and the foreign buyer, the risk rating of the foreign buyer's country, etc.
HOW DOES EXPORT-RELATED SHORT-TERM TRADE CREDIT INSURANCE WORK?
WHAT FINANCING OPPORTUNITIES DOES EXPORT-RELATED SHORT-TERM TRADE CREDIT INSURANCE PROVIDE?
With the insurance certificate, exporters can access more favorable financing conditions without collateral requirements by using working capital financing products offered by banks and/or credit organizations in RA (such as short-term loans and factoring).
WHAT BENEFITS DOES THE FOREIGN BUYER RECEIVE UNDER EXPORT-RELATED SHORT-TERM TRADE CREDIT INSURANCE?
- Opportunity to pay for the supplied goods later
- Improved cash flow and, consequently, reduced need to obtain financing from banks
Benefits of Trade Financing
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Replenishment of working capital immediately after export
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Efficient cash flow management
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Financing can be provided in both the contract currency and other currencies, allowing potential losses from exchange rate fluctuations to be neutralized.
