Export Factoring Insurance - Non-marketable Risk

Export Factoring Insurance – Non-marketable Risk – insurance of export receivables due to a factor against non-marketable risk

Insurance backed by the State Treasury

Insurance of export receivables due to a factor against non-marketable risk allows banks and financial institutions to secure receivables due from buyers based in higher risk countries.

Political decisions may have a significant impact on the country’s economy and, consequently, hinder the performance of the contract you have entered.  Insurance of export receivables due to a factor against non-marketable risk allows banks and financial institutions to obtain cover against the risk of buyer’s default and non-payment, as well as against the risk of sudden changes in the political and economic environment of the buyer’s country.

We are the only institution in Poland providing comprehensive coverage against the so-called non-marketable risk (commercial risk, political risk, force majeure)

Key benefits

• we provide banks and financial institutions which have purchased receivables with cover against the risk of non-payment by a foreign buyer
• we have a vast experience in covering transactions with buyers based in higher risk countries
• we provide a solid evaluation of the buyer’s financial standing and creditworthiness
• we do not charge additional underwriting fees
• we conduct effective debt collection from buyers covered by the policy and we do not charge additional fees for recovered receivables
• we pay indemnity in a timeframe which relieves the bank of the necessity to create special reserves for risks covered by the insurance agreement
• we allow for new buyers to be submitted for cover after the insurance agreement is concluded

Entities eligible
Banks and financial institutions providing factoring services, particularly factoring without recourse.

Subject of the insurance
Undisputed receivables, purchased by a bank or a financial institution, due from foreign buyers and arising from deliveries of goods and services, with repayment terms of up to two years.  Receivables should be purchased prior to their due date, but no later than 30 days from the date of the invoice.  The cover is valid provided that the buyer is informed about the purchase of receivables.

Scope of cover
Loss of receivables caused by the occurrence of non-marketable risk:

• legally ascertained insolvency of the buyer (bankruptcy)
• actual insolvency of the buyer
• default – delay in payment by the buyer exceeding 90 days
• decisions and legal regulations in the country of the buyer, payment moratoria
• inability of making the transfer of accounts receivable and decisions in the insurer´s country, preventing performance of the contract or the delivery of ordered services
• force majeure

We cover receivables due from buyers based in the following higher risk countries:

Costs
Premium rates for individual buyers are set based on the following variables:

• country risk
• payment terms
• additional collaterals

 Estimated premium can be calculated using our online calculator