Whether you are already in the import/export business or you are looking to start, you need to protect your company and ensure you have the right risk management techniques deployed. One of the essential items on your list should be to secure export credit insurance and properly cover your business against risk.
What is Export Credit Insurance?
This type of insurance is what helps keep your business competitive and allows you to offer customers competitive payment terms. Essentially, it allows you to extend more flexibility in payments, but protects you in the event your business partners go out of business and cannot repay their debts owed to your company. Achieve your business vision and goals with a focus on growth rather than worrying about mitigating risk and recovering from loss.
Export insurance offers you protection for foreign receivables against any customer insolvencies, closures, ownership changes, bankruptcies, cash flow difficulties, balance sheet problems, currency fluctuations, natural disasters and other economic conditions that affect the country where your customer is operating. You can also get coverage for political risks such as transfer risks, war, strikes, riots, etc.
The Benefits of Export Credit Insurance
You already know the importance of insuring your business venture, but you need an added layer of reassurance with exports. Here are some important reasons to consider buying export insurance:
- Competitiveness – Letters of credit and prepayment for goods and services used to be the only safe ways to do business across borders in the past. Now, with export credit insurance, you can offer competitive open account terms to foreign customers while minimizing your company’s in-house risks for non-payment.
- Increased Sales – You can now increase your export sales and establish market share in developing or emerging markets that you would otherwise not be able to penetrate due to risk of non-payment.
- Better Lending – When you insure your accounts receivable, you will get access to better borrowing from lenders who feel confident knowing you have nothing to lose.
Shop for Export Credit Insurance Today
Finding the right coverage for your export business is critical for your success. While you may have a business insurance policy, you can only truly protect your company when you have a full risk assessment performed. The experienced brokers at The Nowell Agency will provide a detailed risk assessment and help implement techniques that protect your company from unforeseen events, including non-payment. Meet with one of our friendly, knowledgeable brokers today to discuss your options and see how we can protect your import/export business.
Request a quote for export credit insurance or schedule a risk assessment now by contacting The Nowell Agency. Give us a call at a location near you.