Posted on 03 Nov 10
The Export-Import Bank of the United States (Ex-Im), in cooperation with private credit insurers led by Atradius U.S., has created the first U.S.-backed trade credit insurance program for qualified small to mid-sized U.S. exporters.
The recently announced “Export Reinsurance Program of 2010” was designed to help qualified small and mid-sized exporters expand their sales in overseas markets and, ultimately, to grow their U.S.-based workforce. This initiative makes trade credit insurance more accessible — protecting more exporters against unpaid invoices, to allow safer access to new business opportunities in some of the world’s fastest-growing markets.
As any exporter can attest, not getting paid for goods being delivered is often a legitimate concern. Trade credit insurance coverage helps ease that concern by protecting against nonpayment for such causes as buyer bankruptcy. But recently, the coverage hasn’t been as readily available as many businesses would wish. This program helps address that situation.
According to Thomas Beckwith, CFO, Atradius Trade Credit Insurance, Inc., the program allows private trade credit insurance providers, such as Atradius, to offer coverage to qualified U.S. exporters with the backing of Ex-Im. Atradius U.S. was involved in the creation of the program from the inception and, in fact, was a driver of the effort.
Beckwith said, “The partnership delivers a more robust and sustainable trade credit insurance option to small and medium-sized exporters, affording them access to coverage that had been limited or not available. It can do this by spreading the risk among three entities — the insured business, Atradius and Ex-Im.”
“Atradius has offered trade credit insurance for more than 80 years,” Beckwith said, “with the new government-backed program, the company will be able to provide wider coverage to more U.S. exporters than ever.”
What Is Trade Credit Insurance?
Trade credit insurance is coverage that enables a company to get paid for goods and services they have shipped and then the buyer goes bankrupt or cannot pay for various other reasons. This is not a standard P&C risk, but rather the risk of leaving what is likely a company’s single largest asset — accounts receivable — dangerously exposed to bad debtors.
For complete program details or to find out how you can offer this coverage to your clients, contact Kathy.Farley@atradius.com or call 1-800-822-3223.