Five Reasons Why Export Credit Insurance is a Great Idea for Your Business

by | Jun 8, 2016 | Finance

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Insurance should cover you in the case of a loss, and in the export business, a loss can devastate your organization. Sometimes international sales encounter roadblocks, such as nonpaying customers. Export credit insurance can be an invaluable shield against difficulties such as these. Drake Finance proudly offers comprehensive export credit insurance to American companies that want to make headway into the global trade marketplace.

By extending more flexible payment terms to international buyers, they are more likely to do business with American exporters. Export credit insurance protects exporters against non-payment, ensuring their businesses can continue, even in the event of unforeseen circumstances.

How Does Export Credit Insurance Work?

When exporters ship their goods to an international buyer, they take several things on faith. First, they hope their shipment arrives intact. Second, they hope they will be paid for their goods as soon as possible, and in full. Third, they trust the international political landscape won’t interfere with their sales.

Thanks to advances in technology, the security of shipping isn’t as much of a concern as it was years ago. The advent of the internet and instantaneous global communication also make it much easier to keep tabs on the political landscape and stay current on events that may impact trade. The biggest risk for most American exporters today is nonpayment by a foreign buyer.

A buyer may refuse payment for any number of reasons. In some situations, a buyer may have every intention of paying but may be unable to do so due to circumstances that are completely beyond his or her control, such as political revolution, rioting, war, or acts of terrorism.

What Does Export Credit Insurance Really Do?

Most exporters find the peace of mind of an export credit insurance policy well worth the investment. Drake Finance offers comprehensive and reasonable export credit insurance terms and the tangible benefits to American exporters include:
•    Up to 95% coverage for losses due to unforeseen political or economic risks.
•    Exporters to extend attractive and competitive credit terms to international buyers.
•    Exporters will pay only premiums on their export credit insurance when the policy must be used.
•    Drake Finance will advance payment for exports upon shipment, so American exporters don’t have to wait for the terms of a credit agreement with a foreign buyer.
•    Single-buyer or multi-buyer export credit insurance policies are available with comparable benefits so that exporters can tailor their policies to their organization’s needs.

Export credit insurance through Drake Finance is a fantastic way to make strides in the global trade marketplace for any export company, and policies can be done to fit any organization’s needs.

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