Financial and Legal Costs/Export Credit Insurance

From Wikiversity
Jump to navigation Jump to search
Gftp.svg Unit 4.8-Financial and Legal Costs 

Introduction | Bank Charges | Insurance Premiums | Export Credit Insurance | Legal Fees | Summary | Resources | Activities | Assessment

Export Credit Insurance[edit | edit source]

Export credit insurance is a specialized line of insurance. These policies cover sales from the United States to countries world-wide. Like domestic policies, they cover against the financial inability to repay for goods sold or services rendered. Premiums for export coverage generally run higher and could range from 2.5/10% to 1% of covered sales. Many companies are finding that requiring letters of credit and other cash documents places an artificial obstacle between a buyer and seller, restricting growth. These companies often use credit insurance to offer open terms and be more competitive in the global market place.

Prev | Next