EXIM Export Credit Insurance: Questions for US Sellers

EXIM offers export credit insurance programs intended to help eligible US exporters manage specified foreign-buyer nonpayment risks. Its official materials describe different policy structures and requirements. Insurance is not the same as a loan, a guarantee that every invoice qualifies or an unconditional promise to pay every loss. Begin with the actual buyer, product, country, proposed credit terms and the exporter’s eligibility. Ask the insurer or qualified broker which policy could apply and what is excluded. Do not extend new credit on the assumption that an application or preliminary conversation already provides binding coverage.

Request a clear explanation of buyer limits, approved terms, reporting, premium calculation, overdue notices and claim deadlines. Ask how disputes, returns, concentration and policy exclusions affect the proposed transaction. Assign the reporting work to someone who can maintain accurate shipment and receivable records. A policy can be difficult to use if the business cannot meet its administrative duties. Keep evidence of approval and the current policy terms with the customer’s credit file. Confirm what changes require advance consent instead of assuming that an approved buyer can receive any amount on any terms.

Model the expected customer payment date and a delayed-payment scenario, including the policy’s actual claim process. Insurance does not make cash arrive on the original invoice due date when the buyer fails to pay. Discuss financing separately if the business needs working capital while receivables remain outstanding. A hypothetical exporter should compare margin after premium, administration, financing and uncovered exposure. Review the result with current EXIM and lender information rather than assuming insured invoices automatically become a borrowing base. The decision is whether the proposed credit sale remains workable under the actual conditions, including a loss scenario.