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How do you benefit from different types of credit insurance?

Home Articles How do you benefit from different types of credit insurance?

Do you know that credit insurance can help you in making your monthly loan payments if yousuffer a disability or accident? It is a type of insurance that you, as a borrower, can purchase inorder to guarantee the payment of your outstanding credit balance in times of financial hardship.Therefore, it is also helpful in maintaining your credit rating.

Credit insurance Types

Credit insurance can be primarily divided into 4 types, which are discussed below.

1. Credit disability insurance: This insurance policy helps you maintain a good credit ratingby making your minimum monthly payments, which is due on your card. Though theinsurance company pays your minimum monthly dues for some months, yet your policydoesnt provide coverage for any new purchases, which you make after becomingdisabled.

2. Credit life insurance: It covers any outstanding debt that you owe on your card in theevent of your death. However, in order to enjoy this benefit, the company creditor has tobe the beneficiary of your insurance policy.

3. Credit property insurance: In most cases, you need to buy this insurance along with yourmortgage or credit card. This policy covers the payment for purchased items that getdamaged or stolen. However, insurance company usually lists some conditions forcoverage, which you need to satisfy in order to enjoy the benefits.

4. Credit involuntary unemployment insurance: This policy provides coverage on yourminimum monthly payments if you suddenly lose your job. However, this policy can helpyou in making the payments only for some months. Moreover, you will not get coveragefor any new purchases that you make after becoming unemployed.

Credit insurance Benefits

If you have credit insurance, then you can enjoy a number of benefits, which are discussed in thefollowing lines.

It provides coverage on your minimum monthly payments if you become disabled orsuddenly lose your job.

The policy covers your dues, which helps you to maintain your credit rating even in timesof financial hardship.

This insurance covers the balance on your credit in the event of your death. It provides coverage for purchased items that get damaged in particular incidents, as

listed by the insurance company.

Apart from benefiting a debtor, credit insurance is beneficial for your business, too. It canincrease your borrowing capacity and you can also expand your business into international

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markets with the help of this insurance. However, before buying personal or business creditinsurance, you must clearly understand the limits and exclusions on the payment of yourbenefits.

Why use a specialist Credit Insurance broker?

A specialist broker such as UK Credit Insurance Specialists Ltd (UK Credit) has the knowledge and experience tohelp you attain the best price and structure of cover for your business.

We have access to the whole of the credit insurance marketplace, so you can be confident that all possibilities arecovered. The market offers a sophisticated portfolio of subtly different products, which is constantly being addedto and updated. It is our job to understand and keep pace with all such developments so that you, our client, isfully aware of the options available and the benefits each policy offers.

There is no cost involved in using a broker, yet we work entirely on your behalf to ensure that claims are paid andthe maximum cover available on your customers is in place. We negotiate with underwriters on premiums, policystructure and credit limit decisions not just during the sales process, but also on an ongoing basis throughout thelife of the policy.

UK Credit will advise and guide you on all aspects of your credit insurance policy and provide an invaluable serviceto our clients.

credit insurance Domestic and Export Credit Insurance Cover

UK Credit Insurance Specialists Ltd arrange Credit Insurance policies to protect their clientsagainst the potentially disastrous effects that can occur as a result of bad debts. However,what many do not appreciate is that a Credit Insurance policy provides a range of additionalbenefits and not just bad debt insurance. These benefits may not initially appear obvious.

As those who have Credit Insurance are aware, Credit Insurance policies provide access tounique, continually updated, financial information on both new and existing customers.Credit Insurance helps to ensure that a business has a secure financial foundation enablingit to remain profitable and in a strong position to develop and grow with confidence. With aCredit Insurance policy in place you are armed with a powerful financial and economicinformation source enabling you to develop business with successful and secure partners,proving that a Credit Insurance policy is also a powerful marketing tool.

There are many types of Credit Insurance policy available that can be tailored to your ownparticular requirements. Whether you want to credit insure your entire customer base or

just require a Credit Insurance policy to provide information and security on your exportdebts, UK Credit Insurance Specialists are ideally placed to negotiate a Credit Insurancepolicy that is right for you.

A quote for Credit Insurance from UK Credit Insurance Specialists Ltd commits you tonothing and highlights, in more detail, the many benefits to be derived from a CreditInsurance policy. Contact us now to see how your company can benefit from the securityand information afforded by a Credit Insurance policy, as well as access to sophisticateddebt collection and legal recovery services. A Credit Insurance policy can even provide youwith improved access to competitive funding solutions.

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Please click on the cover option that interests you for a more detailed explanation of eachproduct.

Whole Turnover Domestic Credit Insurance Policy Whole Turnover Export Credit Insurance Policy Combined Domestic & Export Credit Insurance Policy Specific Account Credit Insurance Policy Key Account Credit Insurance Policy Catastrophe Credit Insurance Policy Global Credit Insurance Policy

To request an indication or detailed quotation please complete the relevant form byclicking here .

Whole Turnover Domestic Credit Insurance Policy

This type of Credit Insurance policy is designed to cover all of your entire turnover withcustomers in the UK against insolvency and default. Policies are usually structured with a

first loss of 500-1,000 and many underwriters are now offering fixed premiums inclusiveof credit limit charges as well as an integral collections facility .

Whole Turnover Export Credit Insurance Policy

As per the Whole Turnover Domestic Credit Insurance Policy, but designed to cover yourentire export turnover.

Combined Domestic & Export Credit Insurance Policy

As per the Whole Turnover Domestic Credit Insurance Policy, but designed to cover acombination of domestic and export sales

Specific Account Credit Insurance Policy

A policy designed to cover a single customer, which in many cases, is the largest account onthe ledger. Most polic ies cover insolvency only and an indemnity is applied to the creditlimit granted, usually 80-90%. This type of Credit Insurance policy is not designed to covera customer where there is perceived to be a higher than average risk

Key Account Credit Insurance Policy

This type of Credit Insurance policy covers a selection of between 2 and 20 of yourcustomers, usually the largest accounts on the ledger. These policies usually cover bothinsolvency and protracted default and an excess would apply

Catastrophe Credit Insurance Policy

This type of Credit Insurance policy is designed to suit companies with turnover in excess of 10 million with effective and sophisticated credit control procedures. On this basis, theinsurer underwrites the credit control p rocedures and sets an Annual AggregateDeductible, in excess of which, claims are payable. The deductible is usually set at a level of at least 25,000 and more commonly at 50,000-100,000.

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Global Credit Insurance Policy

This type of Credit Insurance policy would suit a multinational company, with tradingcentres in several countries. A single policy would be structured to cover all the divisions orbranches on either a Whole Turnover or Catastrophe basis, depending on the individual

requirements.

Export credit insurance company and the export enterprises What is therelationship?10-24-2009

export credit insurance company and the export enterprises What is the relationship?internship I was in a trading company and saw a bank, export credit insurance, businessagreements. a lot of things do not understand. export credit insurance major to do? What is therelationship between them.

Answer: Export Credit Insurance: It can be simply understood as the export business for insurancecompanies, that is, the export business loan did not withdraw it, the insurance company mustcompensation.

For the banks, is generally to provide enterprises with international trade financing services, that

is, enterprises in the export loan recovery before the enterprises to export loan guarantee for therepayment, the banks lend money to businesses first, , but banks fear lending out money at risk,demanded that export credit insurance company providing insurance for export loans, and bank refinancing. They signed the tripartite agreement between the.

the important role of export credit insurance is one of the to facilitate bank financing.

you can go to look at the website of Chinas export insurance company, it is understood. or tosearch about export credit insurance, or book store to see the book on export credit insurance tounderstand

Short-term export credit insurance doubles

China's short-term export credit insurance covers 60 billion USD in first nine months

BEIJING: China Export and Credit Insurance Corporation (CECIC) said Monday the short-term

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export credit insurance (ECI) it had undertaken during the first nine months this year totaledUS$60 billion, a 200 percent year-on-year increase.

CECIC was supposed to offer short-term ECI covering at least US$84 billion in 2009, a targetset by the State Council this May to provide more support to Chinese exporters amid the

financial crisis.The export volume with short-term ECI rose by 242.2 percent year on year this September. Theratio of exports with short-term ECI to the total exports had grown to 26.5 percent in this Augustfrom 2 percent in 2002, according to CECIC.

Founded in Beijing in December 2001, CECIC is China's only policy-oriented insurancecompany specializing in providing exporters with guarantees for payment risk in doing export orre-export from China.

UK Credit Insurance Specialists Ltd UK Credit Insurance Specialists Ltd (UK Credit) is an independent specialist broker of creditinsurance , bonds and financial guarantees. Our aim is to offer a high level of proactiveservice to all our clients, whatever their size or location. Working in partnership with ourclients, we provide the expertise to negotiate the most appropriate and cost-effectivesolution for your business, whichever product you require.

UK Credit has grown significantly since 1988, building on the strength of our knowledge andexpertise as well as recommendations from clients, banks, underwriters and otherprofessional introducers.

Our staff includes a number of brokers from both underwriting and broking backgrounds,who bring a wealth of knowledge and experience to the team. We also strongly believe inrecruiting from within and support and encourage all staff accordingly.

UK Credit has a large portfolio of clients spanning numerous trade sectors, from family firmsto listed plcs and multinational businesses.

UK Credit is authorised and regulated by the Financial Services Authority (FSA) the

insurance and financial industry regulator. Further information can be found on the FSAwebsite .

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Insurance Underwriters

Home Insurance Underwriters Insurance Underwriters

It is usual for the insurance companies to safeguard people & organizations from financial crisisover the years. Insurers would need to engage a lot of professionals towards analyzing the risksassociated with their prospective clients & design coverage that would secure long term profitsfor them. Such professionals would need to be specialists at deciding policy conditions, risk assumptions, settlement offers, claims analysis etc. In order to ensure success through each phaseof the claims process, todays insurers would hire professionals with adequate knowledge &expertise.

The Underwriters Hiring Process:

Insurers would often seek professionals with degrees in business administration &financial accounting.

Good returns would always encourage professionals to upgrade their skills & live up tothe industry expectations.

Professionals are becoming more efficient with the advent of underwriting soft wares.

Professionals ought to be good at comprehension too.

Underwriters Respon sibilities

The underwriters job is to process the data provided through the applications & ascertain theprobability of losses arising out of the risk to be covered. These applications would often getassociated with loss-control data, health history, vendor reports & actuarial experiences . Underwriters would have the last word over an applicants chances to have insurance. Theywould also need to calculate the premium & decide on the benefits that a prospective customer isentitled to receive.

Underwriters are required to consider a large number of factors in order to arrive at this decision.They would need to act as a bridge between the insurers & the brokers. With the introduction of the smart systems the underwriters are more equipped to judge the prospects & decide whether

to approve or deny coverage to coverage & fix premium rates in proportion with the risk. Suchtechnical advancements have effectively reduced the chances of huge losses.

The underwriting job has now been turned a lot easier with the use of online databases that offerinstant access to relevant information eg. driving history. It not only save time but also reducesthe volume of paperwork through the risk assessment process.

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Underwriters would mostly focus on 4 types of insurance applications life, P&C, Mortgage &health. Life & health underwriters would again go after groups or individual prospects. Their jobis primarily based on their company headquarters, while the P&C underwriters who operate fromthe branches would have the authority to draw specific ratings without intimating theheadquarters.

Any underwriter has the authority to weigh the different elements of an application & decideabout the fate of the applicant. Junior underwriters would either grow up to be seniors or holdspecial managerial positions in the future. A managerial degree might just prove to be a value-addition under such circumstances. Some of the underwriters would be more successful asinsurance sellers once they obtain state licenses as insurance agents or brokers. On the other handthey might also choose to sale alternative financial products.

Bonds and GuaranteesBonds have been in use in the construction and civil engineering industry since the 17 th century and provide a guarantee of payment of amounts or damages due under contract.Increasingly common outside the construction industry, a wide range of Bonds orGuarantees are available from the insurance market to underpin contractual obligations ormeet statutory requirements.

ABI (Association of British Insurers) Model Form of Bond . Created in 1995 this bondwording acts as the market standard reference point. Written in plain, concise English thebond operates as a guarantee of payment on contractor default or at the point damages are

due under the contract.

On Demand Bonds . These Bonds are issued by Bankers, and as the name implies can beconverted into funds by a call at any time. They are not linked to the underlying contractand effectively negate any safeguards built into the contract as the contractor has no abilityto challenge the call upon the bond. Bankers treat such instruments akin to an open chequeand are treated as part of a companys credit facility.

Parties to a Bond; Contractor, Employer & Surety or Guarantor.

A large number of underwriters (Bondsmen) operate in the UK. We have listed some of thebetter known sureties universally accepted due to their financial strength and rating. The

requirement for acceptance of a Contractor is generally linked to 2 years trading, provisionof full audited accounts showing a positive net worth. Other Sureties may consider businesswith lower acceptance criteria, however these Sureties may not be acceptable to allEmployers.

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Factoring, Invoice Discounting and Trade Finance UK Credit Insurance Specialists Ltd has had close workingrelationships with many of the leading invoice and trade financecompanies for over 20 years. During this time, the expertise we havedeveloped and the relationships forged have put us in an idealposition to find the right funding solution for your company. On thesurface many of the products offered can look similar, however, it isimportant to understand the individual funder's strengths andweaknesses as well as their expertise in your particular sector. UKCredit Insurance Specialists knowledge of this market ensures youspeak to the most appropriate companies for your business.

Invoice Discounting Invoice Factoring

Trade Finance

If you are interested in Invoice Finance, please Contact Us providingas much information as possible annd we will be able to help you.

Invoice DiscountingInvoice discounting allows you to release the value of funds tied up ininvoices outstanding by converting your trade debts into cash. This isachieved by assigning the value of your trade debts, in return forbetween 75% and 90% of the total invoice value, receiving thebalance, less service charges, when your customer pays.

Invoice discounting not only provides you with funding that grows inline with your sales, the facility can also be undisclosed to yourcustomers through confidential invoice discounting (CID). Youmanage your own sales ledger, credit control and customer interface,with no mention of the funding relationship.

Invoice FactoringFactoring has all the benefits of invoice discounting, in terms of itsflexibility as a funding solution for your business.

In addition to these advantages, the funder also carries out yoursales ledger management, performing all aspects of your creditcontrol, using a team of professional credit controllers. As part of thisservice, they maintain all sales ledger records on your behalf andremit statements of account to your customers at each month end.

This facility can be tailored to suit your unique circumstances eitheras full service factoring, where you receive the full suite of services

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as outlined above or as a hybrid product, where you complete yourown sales ledger management.

Trade FinanceTrade finance is the provision of finance to enable goods to be

purchased in order to satisfy an order. Finance is provided by thetrade financier to bridge the funding gap between purchase and sale.

Trade financiers specialise in helping companies achieve the growththat is so often in their potential but beyond the scope of traditionalfinanciers i.e. banks. By paying your supplier direct or opening aletter of credit the trade financier can fund 80% to 100% of the costof goods plus duty and VAT. Trade finance facilities arecomplimentary to your existing funding arrangements and enableyou to take on additional business, which would otherwise be lost.

ON LINE CREDIT REPORTSUK Credit offers on line status reports using Graydons, a leading International provider of Status Agency Reports, this gives you access to a wide choice of reports, whether yourequire information on a sole trader in the UK or a multinational in Japan, all of which areavailable on-line, allowing you immediate access to reports on a "pay as you go" basis withno annual fee. Credit reports are available at discounted rates to UK CreditInsurance customers - ask for details.

On application, you will be provided with a monthly account and charged only for thenumber of reports you take.

Monthly Billing (No minimum usage)

On Line Reports

Competitive Rates

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World Wide Coverage

Non-Ltd Reports

Multiple Levels of Reports

Credit & predictive scoring (Augur score)

Export Credit Guarantee Corporation of IndiaFrom Wikipedia, the free encyclopedia

Export Credit GuaranteeCorporation of India Limited

(ECGC)

The Export Credit Guarantee Corporation of India Limited (ECGC ) is a company whollyowned by the Government of India based in Mumbai , Maharashtra .[1] It provides export creditinsurance support to Indian exporters and is controlled by the Ministry of Commerce . Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964and to Export Credit Guarantee of India in 1983.

HistoryECGC of India Ltd, was established in July, 1957 to strengthen the export promotion bycovering the risk of exporting on credit. [2] It functions under the administrative control of theMinistry of Commerce & Industry, Department of Commerce, Government of India. It ismanaged by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community. [3]

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ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. Thepresent paid-up capital of the company is Rs.900 crores and authorized capital Rs.1000 crores. [4]

What does ECGC do?

Provides a range of credit risk insurance covers to exporters against loss in export of goods andservices.

Offers guarantees to banks and financial institutions to enable exporters to obtain betterfacilities from them.

Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroadin the form of equity or loan.

[edit ] How does ECGC help exporters? Offers insurance protection to exporters against payment risks

Provides guidance in export-related activities

Makes available information on different countries with its own credit ratings

Makes it easy to obtain export finance from banks/financial institutions

Assists exporters in recovering bad debts

Provides information on credit-worthiness of overseas buyers

[edit ] Need for export credit insurance

Payments for exports are open to risks even at the best of times. The risks have assumed largeproportions today due to the far-reaching political and economic changes that are sweeping theworld. An outbreak of war or civil war may block or delay payment for goods exported. A coup or an insurrection may also bring about the same result. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods oron transfer of payments for goods imported. In addition, the exporters have to face commercialrisks of insolvency or protracted default of buyers. The commercial risks of a foreign buyer

going bankrupt or losing his capacity to pay are aggravated due to the political and economicuncertainties. Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseasbusiness without fear of loss.

Cooperation agreement with MIGA (Multilateral Investment Guarantee Agency) an arm of World Bank . MIGA provides:

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1. Political insurance for foreign investment in developing countries.2. Technical assistance to improve investment climate.3. Dispute mediation service.

Under this agreement protection is available against political and economic risks such as transfer

restriction, expropriation, war, terrorism and civil disturbances etcv

ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. Thepresent paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores.

What does ECGC do?

Provides a range of credit risk insurance covers to exporters against loss in export of goodsand services

Offers guarantees to banks and financial institutions to enable exporters to obtain betterfacilities from themProvides Overseas Investment Insurance to Indian companies investing in joint venturesabroad in the form of equity or loan

How does ECGC help exporters?

ECGCOffers insurance protection to exporters against payment risksProvides guidance in export-related activitiesMakes available information on different countries with its own credit ratings

Makes it easy to obtain export finance from banks/financial institutionsAssists exporters in recovering bad debtsProvides information on credit-worthiness of overseas buyers

Need for export credit insurance

Payments for exports are open to risks even at the best of times. The risks have assumed largeproportions today due to the far-reaching political and economic changes that are sweeping theworld. An outbreak of war or civil war may block or delay payment for goods exported. A coupor an insurrection may also bring about the same result. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goodsor on transfer of payments for goods imported. In addition, the exporters have to facecommercial risks of insolvency or protracted default of buyers. The commercial risks of aforeign buyer going bankrupt or losing his capacity to pay are aggravated due to the politicaland economic uncertainties. Export credit insurance is designed to protect exporters from theconsequences of the payment risks, both political and commercial, and to enable them toexpand their overseas business without fear of loss

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Generally asked questions from exporters

Your policy is so complex that you always find a reason to reject the claims

From our annual reports you will find that we do pay out claims. The rules you need to follow, in orderto be protected, are well described and realistic and the policy wordings are fairly straightforward.

In addition to the above you will be advised about operational procedures to follow. We would be happyto give a one-on-one training to people in charge. However, we would pre-suppose that a policyholderhad credit management in place; is able to track overdues, measure exposures on each buyer, andwould apply the rules for discretionary limits.

It is not our wish to reject a claim. This always leads to frustration by the policyholder and could be thecause of us losing the policy.

Top

We never had a debt that impacted our business

Prevention is better than cure. If your debt had never impacted your business, it does not cost much toprotect yourself against catastrophic losses. Should it have impacted, and if you were to buy creditinsurance, then the premium will be much higher.

Even though you may have a clean loss history, it is no guarantee that losses could not be made in thefuture. Of course a clean loss history will be reflected in the advantageous premium rate we would offer.

No one can be entirely sure about their own market. When it moves fast, it becomes less predictable.Credit insurance is a way to streamline your P&L. You pay a reasonable premium each year and youavoid that 'big hit'.

Top

Our portfolio is well-balanced and we currently foresee no risk

If there is an impending risk, it will be too late to buy credit insurance. Even with a well-balancedportfolio, you cannot predict an unexpected claim or catastrophic loss. Unfortunately unforeseencatastrophes do exist e.g. Fraud of a manager that causes a company to go insolvent or secondary

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insolvency, which means the insolvency of a major buyer of your client that, affects your client'sbusiness. You can never be absolutely sure that you have all the information.

Top

We understand our buyers well and we are a highly networked industry

Being highly networked or understanding your buyers is not 'security' to ensure payment from them.Even your best friends sometimes default in payment. Insolvency happens very quickly, and even beingwell informed will prove too late to withdraw your investments on the buyer.

You should ask yourself "how much time and energy do I have to spare on gathering all the necessaryinformation"? One thing to bear in mind is that personal relationships, with clients, can be dangerous.They can prevent you from either recognizing or assessing the problems in a dispassionate way. Aneutral assessment can be added value.

There is a difference between reputation and hard, cold facts. Facts change faster. At times there maybe facts that you are unaware of. The reason that you are well connected may be the motivation as towhy your client will try to pay regularly, for as long as possible, while he is already defaulting on hisforeign suppliers. We have records of payment from all over the world, and sometimes we haveinformation that you cannot gather on your market.

Top

Your premium is too high compared to other insurance providers

Usually our rates are competitive because we have been in the business for over 45 years. If our ratesfall short of our competitors, we should compare the: indemnity, country coverage, and most importantof all credit limits. The premium rate is just an indication of the price, but ultimately you are moreinterested in credit limits and risk assessment. At the end of the day, it is the quality and value-addedservices you get from your insurer which matters. We should take a closer look at coverage and riskassessment before comparing prices.

Ensure that when are making comparisons that take like for like. We are very sharp when we price in ourcore business. However, if we can understand your business needs better, we can advise you on theproduct that is suitable to you in a way that means you have a better balance between the cover andthe premium rate. We also invite you to visit our page in the website on our products to have furtherdetails .

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Service is key in our industry and that is intangible.

Top

We have enough reserves to overcome losses. With the premium we are

paying, we can use that as reserves for our bad debt losses

The reserves put aside are estimated to cover your normal losses. If an unexpected huge debt occurs,your reserves will not be adequate to absorb the losses. Reserves for losses yet to come are not taxdeductible and make your balance sheet look worse. It may also have an impact on your owncreditworthiness in the eyes of your bank or other credit insurers. One thing to bear in mind is thatreserves may be enough to cover your small structural loss but they will never enable you to coveragainst a major default.

Top

We understand our industry well and can predict the upturns and downturns

When one of your clients goes insolvent, it will not be classified as either an industry upturn ordownturn. We might be able to predict insolvency by the continual assessment of the creditworthinessof the buyer. This investment will take a lot of your time. We, as credit insurers, employ specializedstaffs who are dedicated to look at risks such as this.

Political risk is not within our predictions and even with the cyclical knowledge of your industry, it maynot be of help

Top

It is troublesome and tedious for us to report overdue and submits turnover

declarations. It will create more paperwork

Good credit management requires some administration. It is not easy to ensure you get your debts back,this takes some effort. If you do not report to us your overdues, we are sure you will do so within yourown department meetings. Your accounting system will be able to churn out the overdues and it justtakes some effort to inform us in writing.

Declaring your sales turnover, for instance, is also something you need to assess at the end of eachquarter so it is not considered extra work in case of our turnover policy. Furthermore, having the figurewill help you realize your sales situation.

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What we ask is the kind of reporting your company should be able to provide to your managementanyway. The existence of the credit insurance policy will increase the pressure on the creditmanagement department to, in fact, reacts faster to a possible default. Credit insurance gives certainlatitude for reporting that is proportional to the strictness of your internal credit management rules. It issomething that can be reviewed.

If you are only insuring the good buyers, we do not need credit insurance

We do take risks. Each year we pay a substantial amount of the premium back in claims. This means thatwe grant credit limits on buyers who are not necessarily AAA rated. Obviously we do not have the urgeto take credit limits on buyers who are very likely to become insolvent or who have a record of non-payment. As a claim will affect your result, we expect that you would not be happy either.

If you feel that we refuse cover on a "good" buyer, you have the right to grant him open credit, at yourown risk. You need not pay even political risk premium on this part of the turnover at your option whichyou have to exercise at the time of issue/renewal of the policy.

vance payment

Pre Shipment Finance is issued by a financial institution when the seller want the payment of thegoods before shipment. The main objectives behind preshipment finance or pre export finance isto enable exporter to:

Procure raw materials. Carry out manufacturing process. Provide a secure warehouse for goods and raw materials. Process and pack the goods. Ship the goods to the buyers. Meet other financial cost of the business.

Types of Pre Shipment Finance

Packing Credit Advance against Cheques/Draft etc. representing Advance Payments.

Preshipment finance is extended in the following forms :

Packing Credit in Indian Rupee Packing Credit in Foreign Currency (PCFC)

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Requirment for Getting Packing Credit

This facility is provided to an exporter who satisfies the following criteria

A ten digit importerexporter code number allotted by DGFT. Exporter should not be in the caution list of RBI. If the goods to be exported are not under OGL (Open General Licence), the exporter

should have the required license /quota permit to export the goods.

Packing credit facility can be provided to an exporter on production of the following evidencesto the bank:

1. Formal application for release the packing credit with undertaking to the effect that theexporter would be ship the goods within stipulated due date and submit the relevantshipping documents to the banks within prescribed time limit.

2. Firm order or irrevocable L/C or original cable / fax / telex message exchange betweenthe exporter and the buyer.

3. Licence issued by DGFT if the goods to be exported fall under the restricted or canalizedcategory. If the item falls under quota system, proper quota allotment proof needs to besubmitted.

The confirmed order received from the overseas buyer should reveal the information about thefull name and address of the overseas buyer, description quantity and value of goods (FOB orCIF), destination port and the last date of payment.

Eligibility

Pre shipment credit is only issued to that exporter who has the export order in his own name.However, as an exception, financial institution can also grant credit to a third party manufactureror supplier of goods who does not have export orders in their own name.

In this case some of the responsibilities of meeting the export requirements have been outsourced to them by the main exporter. In other cases where the export order is divided betweentwo more than two exporters, pre shipment credit can be shared between them

Quantum of Finance

The Quantum of Finance is granted to an exporter against the LC or an expected order. The onlyguideline principle is the concept of NeedBased Finance. Banks determine the percentage of margin, depending on factors such as:

The nature of Order. The nature of the commodity. The capability of exporter to bring in the requisite contribution.

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Different Stages of Pre Shipment Finance

Appraisal and Sanction of Limits

1. Before making any an allowance for Credit facilities banks need to check the different aspectslike product profile, political and economic details about country. Apart from these things, thebank also looks in to the status report of the prospective buyer, with whom the exporter proposesto do the business. To check all these information, banks can seek the help of institution likeECGC or International consulting agencies like Dun and Brad street etc.

The Bank extended the packing credit facilities after ensuring the following"

1. The exporter is a regular customer, a bona fide exporter and has a goods standing in themarket.

2. Whether the exporter has the necessary license and quota permit (as mentioned earlier) ornot.

3. Whether the country with which the exporter wants to deal is under the list of RestrictedCover Countries(RCC) or not.

Disbursement of Packing Credit Advance

2. Once the proper sanctioning of the documents is done, bank ensures whether exporter hasexecuted the list of documents mentioned earlier or not. Disbursement is normally allowed whenall the documents are properly executed.

Sometimes an exporter is not able to produce the export order at time of availing packing credit.

So, in these cases, the bank provide a special packing credit facility and is known as RunningAccount Packing.

Before disbursing the bank specifically check for the following particulars in the submitteddocuments"

1. Name of buyer2. Commodity to be exported3. Quantity4. Value (either CIF or FOB)5. Last date of shipment / negotiation.

6.

Any other terms to be complied withThe quantum of finance is fixed depending on the FOB value of contract /LC or the domesticvalues of goods, whichever is found to be lower. Normally insurance and freight charged areconsidered at a later stage, when the goods are ready to be shipped.

In this case disbursals are made only in stages and if possible not in cash. The payments aremade directly to the supplier by drafts/bankers/cheques.

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The bank decides the duration of packing credit depending upon the time required by theexporter for processing of goods.

The maximum duration of packing credit period is 180 days, however bank may provide a

further 90 days extension on its own discretion, without referring to RBI.

Follow up of Packing Credit Advance

3. Exporter needs to submit stock statement giving all the necessary information about thestocks. It is then used by the banks as a guarantee for securing the packing credit in advance.Bank also decides the rate of submission of this stocks.

Apart from this, authorized dealers (banks) also physically inspect the stock at regular intervals.

Liquidation of Packing Credit Advance

4. Packing Credit Advance needs be liquidated out of as the export proceeds of the relevantshipment, thereby converting preshipment credit into postshipment credit.

This liquidation can also be done by the payment receivable from the Government of India andincludes the duty drawback, payment from the Market Development Fund (MDF) of the CentralGovernment or from any other relevant source.

In case if the export does not take place then the entire advance can also be recovered at a certaininterest rate. RBI has allowed some flexibility in to this regulation under which substitution of commodity or buyer can be allowed by a bank without any reference to RBI. Hence in effect the

packing credit advance may be repaid by proceeds from export of the same or anothercommodity to the same or another buyer. However, bank need to ensure that the substitution iscommercially necessary and unavoidable.

Overdue Packing

5. Bank considers a packing credit as an overdue, if the borrower fails to liquidate the packingcredit on the due date. And, if the condition persists then the bank takes the necessary step torecover its dues as per normal recovery procedure.

Special Cases

Packing Credit to Sub Supplier

1. Packing Credit can only be shared on the basis of disclaimer between the Export Order Holder(EOH) and the manufacturer of the goods. This disclaimer is normally issued by the EOH inorder to indicate that he is not availing any credit facility against the portion of the ordertransferred in the name of the manufacturer.

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This disclaimer is also signed by the bankers of EOH after which they have an option to open aninland L/C specifying the goods to be supplied to the EOH as a part of the export transaction. Onbasis of such an L/C, the subsupplier bank may grant a packing credit to the subsupplier tomanufacture the components required for exports.

On supply of goods, the L/C opening bank will pay to the sub supplier's bank against the inlanddocuments received on the basis of the inland L/C opened by them.

The final responsibility of EOH is to export the goods as per guidelines. Any delay in exportorder can bring EOH to penal provisions that can be issued anytime.

The main objective of this method is to cover only the first stage of production cycles, and is notto be extended to cover supplies of raw material etc. Running account facility is not granted tosubsuppliers.

In case the EOH is a trading house, the facility is available commencing from the manufacturer

to whom the order has been passed by the trading house.Banks however, ensure that there is no double financing and the total period of packing creditdoes not exceed the actual cycle of production of the commodity.

Running Account facility

2. It is a special facility under which a bank has right to grant preshipment advance for export tothe exporter of any origin. Sometimes banks also extent these facilities depending upon the goodtrack record of the exporter.In return the exporter needs to produce the letter of credit / firms export order within a given

period of time.

Preshipment Credit in Foreign Currency (PCFC)

3. Authorised dealers are permitted to extend Preshipment Credit in Foreign Currency (PCFC)with an objective of making the credit available to the exporters at internationally competitiveprice. This is considered as an added advantage under which credit is provided in foreigncurrency in order to facilitate the purchase of raw material after fulfilling the basic export orders.

The rate of interest on PCFC is linked to London Interbank Offered Rate (LIBOR). According toguidelines, the final cost of exporter must not exceed 0.75% over 6 month LIBOR, excluding the

tax.

The exporter has freedom to avail PCFC in convertible currencies like USD, Pound, Sterling,Euro, Yen etc. However, the risk associated with the cross currency truncation is that of theexporter.

The sources of funds for the banks for extending PCFC facility include the Foreign Currencybalances available with the Bank in Exchange, Earner Foreign Currency Account (EEFC),

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Resident Foreign Currency Accounts RFC(D) and Foreign Currency(NonResident) Accounts.

Banks are also permitted to utilize the foreign currency balances available under Escrow accountand Exporters Foreign Currency accounts. It ensures that the requirement of funds by the accountholders for permissible transactions is met. But the limit prescribed for maintaining maximum

balance in the account is not exceeded. In addition, Banks may arrange for borrowings fromabroad. Banks may negotiate terms of credit with overseas bank for the purpose of grant of PCFC to exporters, without the prior approval of RBI, provided the rate of interest on borrowingdoes not exceed 0.75% over 6 month LIBOR.

Packing Credit Facilities to Deemed Exports

4. Deemed exports made to multilateral funds aided projects and programmes, under orderssecured through global tenders for which payments will be made in free foreign exchange, areeligible for concessional rate of interest facility both at pre and post supply stages.

Packing Credit facilities for Consulting Services

5. In case of consultancy services, exports do not involve physical movement of goods out of Indian Customs Territory. In such cases, Preshipment finance can be provided by the bank toallow the exporter to mobilize resources like technical personnel and training them.

Advance against Cheque/Drafts received as advance payment

Where exporters receive direct payments from abroad by means of cheques/drafts etc. the bank

may grant export credit at concessional rate to the exporters of goods track record, till the time of realization of the proceeds of the cheques or draft etc. The Banks however, must satisfythemselves that the proceeds are against an export order.

Credit InsuranceWhat You Should Know . 2What Is Credit Insurance? . 2How Is Credit Insurance Marketed? 4Does Credit Insurance Meet My Needs? 5What Are the Policy Qualifications and Limitations? . 6Is It Difficult to Cancel a Credit Insurance Policy? 7Talk to Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8State of California Department of Insurance

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What You ShouldKnowPurchasing consumer goods on credit is an everydayoccurrence. Whether it is a major purchase like a home or car,or lesser purchases such as appliances, electronics, clothes,

jewelry, it is very difficult to function without using some type of credit. If you use a form of credit such as a standard creditcard, a home mortgage or a credit card from a jewelry applianceor department store chances are you will be solicited topurchase some form of credit insurance.What Is Credit Insurance?Credit insurance comes in a variety of forms. Typicalcredit insurance coverages include credit life, credit disability,involuntary unemployment, and credit property insurance.

Separate coverages such as those listed above are oftenbundled together and marketed as one packaged product. Itis possible that you will only find value in one or two of thecoverage areas. In that case, you can select the coverageareas you need and drop the rest. The only exception is thatyou must buy credit life coverage if you wish to purchase anycredit disability coverage. Credit disability coverage has to bebundled with credit life coverage and cannot be sold separately. Credit Life Insurance is a type of life insurance that paysoff the debt you owe on a credit account or mortgage inthe event of your death. The payment from the insurancecompany reflecting the payoff balance of your accountor loan always goes to the lender who is named as thebeneficiary of the policy. You cannot name a spouse, familymember, or friend as a beneficiary to a credit life insurancepolicy.Credit Insurance Credit Disability Insurance helps to secure your favorable creditrating by covering your minimum monthly credit account

payment during a period of documented medical disability.Since it is common for policies to contain a maximum timeperiod for continuing payment benefits, it is likely that yourentire balance will not be paid off. Moreover, as interest andinsurance charges continue to add up throughout the period of your disability, it is possible that you may owe more moneyon your account after your disability than you did before,

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depending upon your original balance. Generally, you will notbe covered for any additional purchases made after the onsetof your disability. Involuntary Unemployment Insurance , like credit disabilityinsurance, makes your minimum monthly credit accountpayment during a period of involuntary unemployment, suchas a layoff or downsizing. The limitations noted with creditdisability insurance as defined above are also applicable toinvoluntary unemployment insurance. It is possible that yourentire balance will not be paid off, and it is possible thatyou may owe more money after unemployment ends thanyou did before, even though the insurance company wasmaking your minimum monthly payment. Credit Property Insurance cancels the debt you owe on

items purchased on an insured credit account if the propertypurchased is destroyed by specific named perils such as anaccident, theft, flood, or earthquake. Unlike most propertyinsurance, you do not have to pay a deductible up-front whensubmitting a claim. Deductibles are not used in credit propertyinsurance.Regardless of the particular type of credit insurance youpurchase, it is always important to read and understandthe policy, so you will know the full details of your coverage.While credit insurance provides a number of protections, it isnecessary to know exactly what you are being offered in orderto understand if this type of protection is the best to satisfy yourimmediate and future needs.How Is Credit Insurance Marketed?Several methods are used to market credit insurance toconsumers. The two most common methods involve signing forcredit insurance when filling out a credit application or receivingtelemarketing calls after an application for credit has beenapproved. Since certain elements in the transaction can

create a gap in time between the initial purchase of the creditinsurance and the billing that follows on your credit statement,many consumers are surprised at what they have purchasedwhen reviewing their credit billing statement.Frequently, credit insurance is offered with an introductoryfree -look period that can last anywhe re from 30 to 90 days.Its possible that if you agree verbally to take credit insurance

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during a telemarketing call or by signing the credit insurancebox on a credit application at any retail store, you may notremember the contractual arrangement you have made.When the payment is charged to your credit account after thefree-look period expires, you may have forgotten about yourcredit insurance purchase.When taking out credit it is essential to read the applicationcarefully. Do not mistakenly sign up for credit insurance thinkingthat you have only signed for the credit account. It is importantthat you are fully informed about the credit insurance you arebeing offered before you sign any application or give your verbalokay over the phone. In tele marketing situations, it may beespecially difficult for some consumers to say no to telephone solicitors. However, if you do not want credit insurance or you

do not have enough information to make an informed decision,you must say no, as any other an swer (no matter howreluctant) will start this coverage. Many consumers believe thatan insurance policy cannot be sold without a signature. Thisis not true. It is advisable to carefully listen to telemarketersand to read credit applications to determine if you want creditinsurance or not. If you discover that you have mistakenly takenState of California Department of Insuranceout credit insurance, you should terminate it before the free-look period is over and you begin to be billed on your credit account.Refer to the Is It Difficult to Cancel a Credit Insurance Policy? section of this brochure.By using retail stores, banks, and credit card companies inmarketing credit insurance, the insurance companies reachthe majority of consumers who rely on credit. Your creditorsare motivated to sell you credit insurance because they earnmoney with each credit insurance product sold, and the creditaccount they offer you is protected should you be unable tomake credit payments under the specific conditions of the credit

insurance policy.Does Credit Insurance Meet MyNeeds?Before purchasing any type of life or disability insurance policy, itis wise to take the time to carefully consider your currentfinancial needs and plan for your financial future. In thisprocess you may decide to seek the assistance of a licensed

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insurance agent or broker or a certified financial planner.Since credit insurance is designed to protect your creditaccounts or your mortgage only, it may not be as flexible as atraditional life or disability insurance policy. If you have severalcredit accounts and decide to take out credit insurance oneach account, this may not be as cost effective as purchasinga traditional life or disability insurance policy. Compare theflexibility and cost of the benefits between credit insuranceand traditional life and disability insurance in orderto make an informed purchasing decision.

What Are the Policy Qualificationsand Limitations?When purchasing insurance it is your responsibility

to carefully review the policy language to ensure thatyou understand the policy qualifications, exclusions,and limitations. Since credit insurance is sold withouta comprehensive application or screening process, itis necessary for you to make sure that you qualifyfor the coverage you are purchasing when the policyarrives. Often the only criterion used by insurancecompanies to sell you credit insurance is that you havesome type of credit, loan, or deposit account. Manypeople do not qualify for all the types of credit insurancethat may be bundled together. For example, youmust typically be gainfully employed to qualify forinvoluntary unemployment insurance, yet most creditinsurance applications or telemarketers do not ask foryour employment status when selling this type of creditinsurance. With credit life insurance, many companiesimpose a benefit cutoff at a specific age. Like involuntaryunemployment insurance, most credit insuranceapplications or telemarketers do not ask for your age when

selling this type of credit insurance.Do not unwittingly agree to pay for any type of insurancefor which you do not qualify. Research all requirementsand qualifications carefully, including waiting periods andpreexisting clauses common with credit disability insurance.You should be completely clear on how each creditinsurance policy works and any special claim procedures

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or limitation clauses before you decide to purchase andretain a credit insurance policy.State of California Department of InsuranceIs It Difficult to Cancel a CreditInsurance Policy?Once you have passed the free-look period, it becomesmore difficult to cancel a credit insurance policy. Someconsumers have difficulty locating contact information tocancel a credit insurance policy because the insurancecompany is not the original lender, store, bank, or creditcard company. Also, it is common for retail store accountsto be handled by a separate finance company unrelatedto the original retail store, so you may be unable torecognize the credit account the insurance is covering.

Understandably, it can be very confusing to figure outthe right company to call or writein order to cancel a policy.If you are experiencing difficulty with a credit insurancecompany and believe you are being treated unfairly,please contact the California Department of Insurancethrough any of the ways listed in the following Talk to Us section of this brochure.

Export credit agency

From Wikipedia, the free encyclopediaThis article needs attention from an expert on the subject . See the talk page for details. WikiProject Business or the Business Portal may be able tohelp recruit an expert. (February 2009)

Banking A series on Financial services

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Types of bank s[show]Bank accounts [show]Bank card s[show]Electronic funds transfer [show]Banking terms [show]Finance series [show]

v d e

An export credit agency (known in trade finance as ECA ) or InvestmentInsurance Agency ,[1] is a private or quasi-governmental institution that act as anintermediary between national governments and exporters to issue exportfinancing. The financing can take the form of credits (financial support) or creditinsurance and guarantees (pure cover) or both, depending on the mandate the ECAhas been given by its government. ECAs can also offer credit or cover on their ownaccount. This does not differ from normal banking activities. Some agencies aregovernment-sponsored, others private, and others a bit of both.

ECAs currently finance or underwrite about $430 billion of business activityabroad - about $55 billion of which goes towards project finance in developingcountries - and provide $14 billion of insurance for new foreign direct investment,dwarfing all other official sources combined (such as the World Bank and

Regional Development Banks, bilateral and multilateral aid, etc.). As a result of theclaims against developing countries that have resulted from ECA transactions,ECAs hold over 25% of these developing countries' US$2.2 trillion debt. Thesedata are unreliable in the absence of source, definition, or date.

Export credit agencies use three methods to provide funds to an importing entity:

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Direct lending This is the simplest structure whereby the loan is conditionedupon the purchase of goods or services from businesses in the organizingcountry.

Financial intermediary loans Here, the export import bank lends funds to afinancial intermediary, such as a commercial bank, that in turn loans thefunds to the importing entity.

Interest rate equalization Under an interest rate equalization, a commerciallender provides a loan to the importing entity at belowmarket interest rates,and in turn receives compensation from the export import bank for thedifference between the below-market rate and the commercial rate.

Contents

[show]

[edit ] Officially supported export credits

Credits may be short term (up to two years), medium term (two to five years) orlong term (five to ten years). They are usually supplier's credits, extended to theexporter, but they may be buyer's credits, extended to the importer. The risk onthese credits, as well as on guarantees and insurance, is borne by the sponsoringgovernment. ECAs limit this risk by being "closed" on risky countries, meaningthat they do not accept any risk on these countries. In addition, a committee of government and ECA officials will review large and otherwise riskier than normaltransactions.

[edit ] Tied aid credits

Officially supported export credit may be connected to official developmentassistance (ODA) in two ways. First, they may be mixed with ODA, while stillfinancing the same project (mixed credit). As the export credit is tied to purchasesin the issuing country, the whole package qualifies as a tied aid credit, even if theODA part is untied aid. Second, tied aid credits are not very different from exportcredits, except in interest, grace period (the time when there is no repayment of theprincipal) and terms of repayment. Such credits are separated from export credit byan OECD requirement that they have a minimum degree of "softness". "Softness"is measured by a formula that compares the present value of the credit with thepresent value of the same amount at standardized "commercial" terms. Thisdifference is expressed as a percentage of the credit and called "concessionalitylevel". Thus a grant has a concessionality level of 100%, a commercial credit

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scores zero per cent. The higher the concessionality level, the more the tied aidcredit looks like ODA, the lower, the more it looks like an export credit.

Partially untied credits consist of a tied and an untied part. The latter is usuallyintended to finance "local cost", investment cost to be made in the importingcountry. This part may also be in a local currency. Partially untied aid is treated astied aid.

[edit ] International regulation

Both officially supported export credits and tied aid credit and grants are extendedon terms controlled by governments. Therefore, there is a constant temptation touse these financial instruments to subsidize commercial exports in order to win atemporary advantage on an export market or to counterbalance such an action from

another government (matching). However, the end result of such action is negativefor importing countries (usually developing countries), who are rendered unable tochoose the best combination of quality and price but consider financing first. It isalso negative for tax payers, who foot the bill. It may only to the benefit of exporters whose government have the deepest pockets and the greatest willingnessto subsidize, even though the macro-economic outcome of the subsidy is doubtful.In the past, there have been big, government-sheltered companies that were keptalive to a very large extent by export credits and tied aid credits. To avoid thesetraps, it was considered useful to standardize export credit conditions and tomonitor matching and tied aid credits.

This situation has led first to an informal agreement in 1976 among some OECDcountries, known as "The Consensus". This was succeeded in 1978 by agentlemen's agreement facilitated by the OECD's now defunct Trade Directorate,which established a Working Party on Officially Supported Export Credits. Thisgentleman's agreement, officially known as the Arrangement on Guidelines forOfficially Supported Export Credits, is known as "The Arrangement". Althoughnegotiations are facilitated by the OECD, not all OECD member countries areparticipants ad membership is possible for non-OECD countries.

Since 1999, country risk categories have been harmonized by the Arrangement andminimum premium rates have been allocated to the various risk categories. This isintended to ensure that competition takes place via pricing and the quality of thegoods exported, and not in terms of how much support a state provides for itsexporters. The Arrangement does not extend to exports of agricultural commoditiesor military equipment. A recent decision at the World Trade Organization (WTO)

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indicates that the use of officially supported export credits in agriculture is boundby WTO members' commitments with respect to subsidised agricultural exports(see the WTO Appellate Body decision on the Brazil-US cotton case as it relates tothe General Sales Manager (GSM) 102 and 103 programs and other USagricultural export credits).

The Berne Union , or officially, the International Union of Credit & InvestmentInsurers, is an international organisation for the export credit and investmentinsurance industry. The Berne Union and Prague Club combined have more than70 member companies spanning the globe.

At EU level, the European Commission, in particular DG Trade, plays a role in theharmonization of Export Credit Agencies and the co-ordination of policystatements and negotiation positions. This is based on council decisions

73/391/EEC and 76/641/EEC. These decisions provide for prior consultationsamong member states on long term export credits. Member states may ask eachother if they are considering to finance a specific transaction with official exportcredit support. EU members may not subsidize intra-EU export credits.

[edit ] Polemic on ECAs

Observers argue for and against export credits. Some observers view them asnothing more than export subsidies by a different name. Others argue that exportcredits may further the burden of debt that poor countries already suffer. The

activities of ECAs are considered by some to be a type of welfare for largecorporations . ECAs are also criticised for insuring companies against politicalactions which aim to protect workers' rights , other human rights or the naturalenvironment in the countries where the investment is being made. Advocates of ECAs have assertions of their own, such as the following: export credits allowimpoverished importers to purchase needed goods that would otherwise beunaffordable; export credits are components of a broader strategy of trade policies;and government involvement can achieve results that the private sector cannot,such as applying greater pressure on a recalcitrant borrower. These arguments forand against export credits are not new, having been studied at length in academicliterature (for a good general discussion, see Baron, David P. The Export-ImportBank: An Economic Analysis. Academic Press. 1983.; or Eaton, Jonathan. CreditPolicy and International Competition. Strategic Trade Policy and the NewInternational Economics, ed. Paul Krugman. MIT Press, Cambridge Mass. 1988.).Of course, these arguments also spill over into broader literature and it is certainlyimportant not to confuse the agency that applies the export credits, the ECA, with

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the actual policy of providing guarantees or direct lending support to facilitateexports. For example, some accuse the Canadian Wheat Board of providing exportcredits (for a strident representation of this argument, see Goodloe, Carol. TheCanadian Wheat Board: Government G uarantees and Hidden Subsidies? TheEstey Centre Journal of International Law and Trade Policy, Vol 5 No 2, p 102-122. 2004.).

ECAs are increasingly requiring member countries to undertake anti -corruption due diligence when applying for export credit. This is due to the increasedinternational enforcement of anti -bribery laws.

ECAs play a pivotal role of getting new projects financed so the economy can beturned around from this recession. Most commercial banks are closed for newbusiness and project funding is a scarce resource. The favourable Commercial

Interest Reference Rate (CIRR is the reference rate laid down by the OECD for itsmember states as the minimum interest rate for officially supported financing of exports) is helping to keep your cost of capital down. But even more important is itthat ECAs enables start ups to get financing, which again implies that projects arebeing realized.

What is Credit Insurance? This is insurance that protects you against possible paymentdefault by your debtors. If you are an exporter, an insurance

policy would cover your domestic and international debtors.ATI investigates each of your debtors and issues insurancecoverage against potential payment default. Our creditinsurance protects policy holders against payment failure dueto bankruptcy, deteriorating financial circumstances or, if aspecified buyer, payment extends beyond the credit period(protracted default).

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ATI insures a credit period of up to one year. ATI can also provideinsurance to cover pre-shipment. This may be desirable if goodsare being produced with a non-standard configuration for aspecific client. ATI can also insure single obligors for tenors of upto 10 years.

So why take unnecessary risks when for a modest premium, baddebt can be managed? Insure your debtors payment risk with ATI. DisclaimerATIs products are sold as insurance policies