Financial and Legal Costs/Export Credit Insurance

Unit 4.8-Financial and Legal Costs

Introduction | Bank Charges | Insurance Premiums | Export Credit Insurance | Legal Fees | Summary | Resources | Activities | Assessment Go to Unit 4.1 | Unit 4.2 | Unit 4.3 | Unit 4.4 | Unit 4.5 | Unit 4.6 | Unit 4.7 | Unit 4.8 | Unit 4.9 Return to International Finance Module 4: Payment Methods

Export Credit Insurance

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.

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