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Export Credit Insurance: Much More Than Risk Protection
February 15, 2024 Eugene Uhm, Business Development Specialist

Negotiating with Foreign Buyers: More Than Just Cash Up Front

Demanding upfront payment for your American-made products might seem like a smart move, but are you missing out on opportunities by not offering credit terms?

Unlocking Growth with Export Credit Insurance:

The Export-Import Bank of the United States (EXIM) export credit insurance policies, allow you to extend credit to international buyers while protecting your company from nonpayment. An additional benefit for export credit insurance is that it provides you the opportunity to consider flexible sales options like mixed terms. Whether you're building new partnerships, exploring new markets, or simply seeking deeper customer engagement, mixed terms could be the difference in securing that sale with your international buyer.

More Than Just Risk Protection:

Beyond securing your receivables, export credit insurance boosts your borrowing power. Uninsured foreign receivables are often excluded from your borrowing base, limiting your access to capital. However, with EXIM’s up to 95% insurance coverage, lenders are more likely to include foreign receivables in your borrowing base, expanding your financial flexibility.

The Unexpected Advantage:

Here's one tip that is overlooked: export credit insurance can be a powerful marketing tool! Traditionally, negotiations focus on product features, market potential, and logistics. Credit terms rarely come up early, leading to friction when your assumption of upfront payment clashes with your buyer's expectation of credit. Offering credit terms upfront, backed by an EXIM export credit insurance policy, empowers you to control the narrative and gain a competitive edge.

Three Reasons to Consider Export Credit Insurance:

  1. Win-Win Solutions: Offer competitive credit terms to attract buyers while protecting your business from nonpayment.
  2. Financial Powerhouse: Boost your borrowing potential and access more capital for growth.
  3. Marketing Masterstroke: Stand out from the competition by offering convenient credit terms with confidence.

Ready to Explore?

EXIM’s export finance specialists are ready to assist you in the next step of your exporting journey. Click here for a free consultation today! Don't let cash-up-front demands limit your international potential. Explore export credit insurance and unlock new horizons for your business!

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EXIM’s Blog postings are intended to highlight various facets of exporting, but the postings are not legal advice, and are not intended to summarize all legal requirements associated with exporting.