|International Business Credit Management Articles
Benefits of Export Credit Insurance
A growing number of U.S. companies are choosing to purchase credit insurance coverage for their foreign exports. Export insurance helps companies to expand their international sales with greater confidence, and enables U.S. companies to compete more effectively in an increasingly global market by being able to offer competitive terms including open account terms to foreign buyers.
Some of the more common reasons for payment default by foreign buyers include:
In many of these scenarios, the seller would be covered under an export credit insurance policy. For the credit manager working for a company that exports products overseas, it would be inappropriate not to at least consider the costs and benefits of purchasing an export credit insurance policy.