Did you know that 80 percent of world trade is done on open account terms? As an experienced exporter or as someone just thinking about exporting, you are probably worried about a number of risks, including:
- How to grow your global business without a secure credit line
- How to compete with international vendors
- How to ensure foreign buyers pay their bills
Trade finance can help you mitigate the risk of doing business abroad and help you sell your goods and services to more people in more markets – in turn growing your market-share and increasing your bottom line.
One of the most accessible products for businesses already exporting or looking to export is export credit insurance, a type of trade credit insurance. Export credit insurance can help you compete internationally and grow your business:
- Reduce the risk of foreign buyers defaulting on payments
- Increase international sales
- Finance new business opportunities
Export credit insurance can also eliminate your need to secure loan collateral or require foreign buyers to pay cash in advance. Additionally, it can be a cheaper alternative to securing a letter of credit.
Some private groups do offer export credit insurance; however, they usually come with a minimum premium of $10,000-$15,000. Export-Import Bank of the United States and its recognized brokers offer flexible and affordable solutions to businesses that can’t secure export credit insurance through traditional channels.
Our solutions are easy to apply for, generally cover up to 95 percent of your business loss due to commercial or political risk, and come with an adjustable premium that you pay only when you need the insurance.
If you are a business with fewer than 500 employees, have been operating for at least a year, have a positive net worth, and are currently selling internationally without using export credit insurance or with a letter of credit, contact a Bank representative today to learn how to reduce operational risk, increase global sales, and stabilize your bottom line.