What are export receivables?

When selling products/services in foreign markets with a deferred payment, there are risks of possible non-payment of receivables. For protection against the risk of non-collection of their receivables from export transactions, exporters may insure their receivables against commercial and political risks.


Post-shipment insurance of export receivables

Post-shipment insurance of export receivables means insurance of the supplier’s receivables from the foreign buyer after the realized delivery of the goods. Post-shipment insurance of export receivables includes:

  • insurance against commercial risks and
  • insurance against political risks.
 

Commercial risks:

  • bankruptcy,
  • protracted default by a foreign buyer, 180 days from the agreed payment term.

Political risks:

  • risk of war or similar events,
  • risk of license revocation,
  • breach of contract.

Pre-shipment insurance of export receivables

Pre-shipment insurance of export receivables means when the exporter manufactures special order goods for a foreign buyer. DBNM shall indemnify the exporter in case the foreign buyer goes bankrupt or political risk occurs in the country of the foreign buyer during the manufacturing process, and in case the exporter is unable to sell the product to another buyer as a result of its specificness.

 

Pre-shipment insurance of the export receivables includes:

  • insurance against commercial risks and
  • insurance against political risks.
 

Commercial risks:

  • bankruptcy

Political risks:

  • risk of war or similar events,
  • risk of license revocation,
  • breach of contract.

Credit Insurance Division Contact:

Tel: 02/3115-844, 02/3114-840 ext. 141, 142, 143, 144, 145.