The Export-Import Bank of the U.S. (EXIM) strongly recommends that EXIM policyholders work with a specialty insurance broker. Insurance brokers are responsible for administering most of EXIM’s export credit insurance policies. These registered insurance brokers have been screened by EXIM and receive ongoing training and updates about the agency’s products and procedures. Additionally, these brokers are directly compensated by EXIM, meaning, the exporter does not pay any broker fees. This ensures that EXIM policyholders receive the highest level of support from their broker. Here are some of the key benefits of working with an EXIM registered broker:
Interpret Policy Requirements. EXIM registered brokers are trained to interpret specific policy requirements. For example, EXIM insurance policies require U.S. exporters to stop shipments to an international buyer if the buyer is 30-90 days past due on their oldest invoice. But should shipments be stopped at 30 days, 90 days, or something in between? The exporter can turn to their broker for guidance in a scenario like this.
Remain in Policy Compliance. By working with an EXIM registered broker, exporters can receive assistance with their documentation in the event they need to file a claim. Exporters can also work with brokers on their routine policy maintenance needs over the life of the policy, such as recording monthly invoices within an EXIM Online account (required if credit was extended to an insured foreign buyer) as the sale is not covered until the premium is paid.
Save Time. Along with the reasons cited above, exporters can count on their broker to guide them through the process of policy updates. This valuable counsel also saves processing time for exporters. An example is when an exporter is altering their selling arrangements and/or terms with their foreign buyer. Its broker knows the process and handles the paperwork.
If would like more information about EXIM registered brokers or put in touch with one, please click here to schedule a free consultation with an EXIM trade finance specialist.