EXIM Revises Short-Term Insurance Products to Provide Small Businesses with Enhanced Financing Flexibility
June 9, 2020
Republication
The Export-Import Bank of the United States (EXIM) has revised key features of two short-term export credit insurance products that will provide U.S. exporters and financial institutions additional options designed to streamline the application process and enhance the customer experience.
Although plans for these measures were underway before the onset of the COVID-19 (coronavirus) pandemic, the export credit insurance revisions will work alongside EXIM’s COVID-19 relief measures by providing small businesses with additional financing opportunities. Nearly 90 percent of EXIM’s authorizations directly support small businesses.
“As we come together to focus on America’s economic comeback, EXIM’s actions to improve standards and options will provide greater transparency in key features of our export credit insurance products, as well as further ongoing efforts to assist exporters with flexible financing solutions during this very challenging economic period,” said EXIM President and Chairman Kimberly A. Reed. “These changes are particularly important for our nation’s small businesses, and EXIM proudly stands with them as they continue to support U.S. jobs through the export of their ‘Made in the USA’ goods and services to the global marketplace.”
Short-Term Credit Standards
Short-Term Credit Standards (STCS) provide an overview of the standard credit information requirements EXIM needs to consider applications. The new STCS, which reflect input received from EXIM insurance brokers, has been developed to increase transparency and reduce standard documentation requirements to improve the customer experience.
The STCS changes, which took effect May 1, 2020, include:
- Increasing credit limit thresholds, which streamlines the application process by reducing the documentation customers need to provide.
- Expanding the STCS overview tool, which is available on EXIM’s website, to include more information designed to help customers find the best short-term insurance product for their needs.
Multi-Buyer Select Risk Insurance
The short-term insurance product formerly known as Reasonable Spread of Risk (RSOR) is now known as Multi-Buyer Select Risk (MBSR) to more clearly reflect the purpose of this insurance policy. MBSR offers a solution for customers seeking multi-buyer coverage for only part of their export credit portfolio, and EXIM provides a worksheet to help calculate the eligible portion of their sales.
No comments:
Post a Comment