How the two work together
Lenders are far more willing to fund overseas receivables when they are insured. Assigning the policy to the funder often raises the advance rate and widens the list of acceptable buyers and countries.
Export finance vs Trade credit insurance
Exporters face two problems: waiting to be paid and the risk of not being paid at all. Export finance solves the first. Credit insurance solves the second. Many exporters need both.
| Criterion | Export finance | Trade credit insurance |
|---|---|---|
| Main purpose | Provides cash early | Protects against non payment |
| Cost basis | Interest or discount charge | Premium on insured turnover |
| Effect on borrowing | Is the borrowing | Improves what lenders will advance |
| Covers political risk | Only if built in | Often, by policy |
Lenders are far more willing to fund overseas receivables when they are insured. Assigning the policy to the funder often raises the advance rate and widens the list of acceptable buyers and countries.
If cash flow is the issue, start with export finance. If customer default is the worry, insure. For growing exporters, combining both usually gives the best terms.
Premiums are usually a small fraction of insured turnover and can be offset by better funding terms.
Many countries run export credit agencies that guarantee or insure export finance.
Not sure which route fits? Describe the requirement once and we will structure it and approach the providers whose criteria match. No upfront fees — charges are due only once funding is in place.
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