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Export Credit Insurance

Export credit insurance can help businesses to expand into new territories with security.

The principle of export credit insurance is the same as trade credit insurance in that it provides cover for your business if customers owe you money for services or goods, but with a specific focus on overseas trade. At PH Credit, we are experts in export credit insurance, so are best placed to get to know you and your business, to understand what you need and then find the right cover to mitigate the risks associated with exporting. 

Why Your Business Needs Export Credit Insurance

Exporting can be an unpredictable part of business and is full of risk, such as: 

  • Political risks
  • Currency transfer issues
  • Civil unrest
  • Debt recovery 
  • Unpredictable tariffs.
  • Language & business customs

However, exporting is very important for many businesses, which is why export insurance is required, to protect your business and to help you expand safely and in a competitive manner.  

Take a look at our Export Credit Insurance Article, where we explore examples of how transformative export credit insurance can be for a business. In these examples, the common thread is that a well structured and managed export credit insurance policy helps to provide the confidence to take on new business and to increase sales to existing customers, safe in the knowledge that the invoices will definitely be paid. Hopefully by the customer, but failing that by the insurer through your export insurance policy.

What Are The Benefits Of Export Credit Insurance? 

  • Gain confidence to expand your business safely and increase trade by focusing sales efforts on insured customers.
  • Build strong relationships with customers as a result of being able to offer more favourable trading terms.
  • Improve relationships with banks, as export credit insurance functions as guaranteed collateral to banks, which in turn improves your access to finance.
  • Provide peace of mind to your stakeholders by meeting the risk management demands
  • Gives you security of cash flow, as an export credit insurance policy protects you against both formal insolvency and prolonged non-payment you can produce reliable forecasts on when you will be paid.

Why Use Us For Your Export Credit Insurance?

  • We use our wealth of knowledge, experience and buying power to negotiate the very best export insurance policy for your business
  • We have a specialist broker status with key export credit insurance companies that include Atradius, Allianz Trade, formerly Euler Hermes, Coface UK, Chubb, Tokio Marine HCC & QBE Europe
  • Rather than seeing average response times of days or being on hold for hours and then explaining your situation every time through the claim process, we can do all the hard work for you and you will be straight on the phone to a broker that already knows you and your business needs
  • We are able to help you with due diligence of the trustworthiness of trading partners
  • As a dedicated, specialist export credit insurance broker, we are not tied to any insurer, but we can offer unbiased advice on different export insurance policies

Without a specialist export insurance broker, you simply won’t find the same level of professional yet personable service.

Find Out How Export Credit Insurance Can Help Your Business

To find out more information about how export credit insurance could benefit your company, contact us today for a strictly no cost or no-obligation quotation. 

From here, we will agree the terms of insurance where you can then begin to enjoy exporting with confidence. If you do need to make a claim, we will be on-hand to make the process straightforward and manageable for you. 

Export Credit Insurance FAQ’s

Export credit insurance helps businesses to trade in a safe and competitive manner overseas. The export insurance policy allows you to offer more favourable terms during trade, when more restricted methods would have been the only safe way of doing business, such as prepayments or letters of credit. On average when a company has export credit insurance and is able to offer open terms, foreign customers will buy around 40-50% more on average. Companies that provide export credit insurance protect your sales from a range of risks such as customer bankruptcy and political risks, including changes to government legislation.

With export insurance, the trade and invoices that you deal with are covered with the export insurance policy for the whole year, making it even more beneficial for traders. There are very few companies that can compete overseas without levelling the playing field by offering open terms, made possible by having export credit insurance. Working with a export credit insurance broker will be able to find the right export insurance policy that you need for your trade.

The advantages of export credit insurance far outweigh any disadvantages, although we don’t ignore the fact that there can be limitations. For example, in some cases, the risk associated may be far too high so it would not be viable to offer cover in that instance. However, these decisions are made following an in-depth inspection and will be explained in detail by our experts. At this point, if we discover that it is not possible to insure you, this would be an indication that it would be best to find a more secure buyer for your export services. We can then find you the right cover to protect you and your business.

There is a range of different reasons why exporters obtain an export credit insurance policy, including:

• Evaluate international businesses no matter the size - The issue when dealing internationally is for any size business, it is difficult to analyse whether the account is worth giving credit for. This is why many people opt for export credit insurance, to allow you to expand into new markets safely.

• Accelerate growth in new markets - Businesses want to look their best when looking for opportunities in international markets. Export credit insurance helps businesses grow by allowing them to offer open term agreements that international businesses are more attracted to.

• Protect against political risk - When dealing internationally, one thing that is uncontrollable is how political states change, which is when export credit insurance is so important. One minute you could be shipping products to China, but then you get an embargo which prohibits you from trading with that country. If you had to reroute, this may cause losses which are then protected through your export credit insurance policy.

• Better relationships with customers and banks - When you work with customers internationally, cash in advance or letters of credit can turn potential customers off. Export credit insurance removes this worry from your customers and protects your business.

If your business exports goods internationally on credit, you need export credit insurance. Trying to open new accounts, review terms or recover debts can be extremely time-consuming and complicated. When you have export insurance, you can expand safely without having to worry about losses if the business fails to pay.