Company Name:
Lishui Huanqiu Bearing Trading Co., Ltd.
Company Address:
No.11 Shiting Road, Shuige Industrial Zone,Lishui, Zhejiang,China
Contact Person: William
Email: admin@tradebearings.com
Homepage: www.asiabearings.com
Bearing B2B: www.tradebearings.com
While most businesses insure their fixed assets, many overlook the risk of non-payment by the buyer. There may be buyer, country or political reasons for non-payment.
As an exporter, you can take out export credit insurance. This protects against non-payment and is an important tool in credit management. It means you can sell more goods or services on credit terms and increase your borrowing power. However, it should not replace good credit management practices.
Export insurance policy
An export insurance policy will cover up to 95 per cent of loss against non-payment for the supply of goods or services and can be tailored to your needs:
If you export consumer goods or raw materials on cash or credit terms of less than two years, you'll need to get a quote from a private credit insurer.
If you supply capital goods (plant, machinery etc) or services with payment terms of two years or more, contact the Export Credits Guarantee Department (ECGD), the UK's official export credit agency.
Bond insurance
Many buyers abroad ask sellers for bonds or bank guarantees in case the seller doesn't keep to their side of the contract on quality or performance after receiving advance payments.
Most export-related bonds are payable on demand, so pose a risk for UK exporters. Outbreak of war, for example, or overnight imposition of trade embargoes can lead to the calling-in of a bond. A bond insurance policy will protect you against these risks.
The ECGD offers bond insurance to their existing customers, otherwise ask a private credit insurer for a quote.
