Are you an asset based lender looking to enhance receivable collateral?
a Financial Institution making working capital or asset-based loans, you can enhance the value of your accounts receivable collateral by becoming a loss payee on a trade credit & political risk Insurance policy held by your borrower.
Products for Financial Institutions
FCIA Trade Credit & Political Risk Insurance offers a broad, flexible variety of policies that give you options to insure trade finance structures with repayment terms up to seven years.
Purchase of Accounts Receivable Policy
- Financial Institution can “pass back” co-insurance to the seller
- Bank (or Financial Institution) is named the policyholder
- Premiums payable only on actual purchases
- Policies cover one or multiple buyers
- Non-cancelable limits or Pay-As-You-Go policy options available
- Single or multiple foreign or domestic debtors
Trade Payables (Supply Chain) Financing Policy
- Transaction is initiated by the buyer who is a client of the bank
- Bank pays off supplier(s) and assumes risk of nonpayment by buyer
- Bank obtains coverage against that nonpayment risk
- Premiums payable only on actual fundings
Pre-Export / Export / Import Financing (Buyer Credit) Policy
- Coverage is available on either short-term or medium-term repayment terms.
- 180-day waiting period to file claim
Letters of Credit Policy
- Non-honoring of ILC coverage for political or commercial risks
- Can cover single or multiple issuing banks in one country
Capital Equipment Leases Policy
- Policies provide medium term coverage to capital equipment lessors and financial
- institutions against loss on a capital lease with one lessee or multiple leases.
Non-Delivery Following Advance of Funds Policy
- Non-delivery of contracted goods by government-owned or private suppliers followed by a failure to return/repay the insured’s advance payment.
Major Country Risk Developments, March
Overview Recent data from the Commerce Department showed that U.S. consumers continue spending at a stronger than...
Top 5 Benefits of Trade Credit Insurance
How does trade credit insurance work? Trade credit insurance is a type of insurance that protects businesses from the...
Major Country Risk Developments, February
Posted with permission from greatamericaninsurancegroup.com Overview Federal Reserve has dialed back on the pace of...