Export Credit Insurance Financing refers to a short-term export trade finance provided by CEXIM to the exporter after shipment, by which the exporter (our customer) assigns proceeds of claim to CEXIM after the exporter has arranged short-term export credit insurance with export credit insurance companies recognized by CEXIM. 

Our Service: It is applicable to export transactions settled in documentary credit, documentary collection (including D/A and D/P) and open account (O/A). 

Benefits for Exporters 

Avoiding Non-payment Risks: Taking buyer and country risks for the exporter, export credit insurance companies will compensate the exporter’s loss which is under the cover provided that the exporter has shipped the goods within the buyer’s credit limit approved by the insurance companies; 

Enhancing Export Competitiveness: Supported by export credit insurance, the exporter can choose more competitive settlement such as D/A, D/P and O/A in order to increase its trade opportunities and international competitiveness; 

Enhancing Operation of Working Capital: As post-shipment finance, it turns accounts receivable into working capital, thus accelerating cash flow and improving finance condition. 

When Do You Choose Export Credit Insurance Financing? 

The exporter has a post-shipment financing need under documentary collection or open account but is lack of collaterals accordingly. 

Tips 

The export credit insurance companies should have a cooperation agreement signed with CEXIM; 

We retain the recourse against the exporter under credit insurance financing; 

Normally the amount of financing will not exceed 80% of the lower of the amount declared to the insurance companies or the buyer’s available credit limit multiplied by respective coverage ratios; 

Kindly note export credit insurance financing requires more documents than other finance services do, so a comprehensive knowledge of the requirements is necessary for the exporter.