Export and Pre-Export Credit Insurance

Policyholder is the exporter, who insures the receivables related to the agreed upon payment delay, which enable the buyer to pay for the supplied goods and/or services in a specified period after delivery. The exporter can transfer the rights arising from the insurance policy to a bank (assignment), therefore ensuring more favourable financing conditions.

The buyer repays the exporter in full of advances and from the credit approved to the buyer by the exporter's bank. The object of the insurance are receivables arising from the buyer’s credit, with the policyholder being the bank which grants it. Several variations are possible with this type of insurance, such as a credit line, the purchase of receivables, documentary credit, etc.

It is used as a substitute to the foreign bank's credit, simplifying credit procedures and documentation. You can improve competitiveness of your commercial offer by providing option to finance your buyer. The financing of the buyer is approved by your bank, which insures this credit through SID Bank. This enables you to receive payment at delivery and your buyer to pay for the goods over longer period.

• Financing of infrastructure in the areas of: telecommunications, traffic, sport, tourism, culture, healthcare, etc.
• Financing the renewal of construction or residential property in specific areas, such as non-profit residences, residences for the youth, nursing homes and assisted living facilities, especially when they include energy efficient and environmentally friendly measures.
• Financing employment preservation and increase, with education, specialized qualifications and knowledge needed for growth of companies and re-training of employes.

The buyer prefers to obtain financing from the exporter and not from the bank and the exporter wants to speed up the financial transaction since the bank is able to conclude a purchasing contract with the exporter faster than a credit contract with the buyer. 

It improves liquidity to the exporter for the entire duration of the export transaction and it lowers the bank's requirements for collateral from the exporter.

It provides liquidity to the exporter for a period up to two years and lowers the bank's requirements for collateral from the exporter. It is suitable when the exporter has revolving business with payment terms less than one year.