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Q: Export credit insurance ( No Answer,   1 Comment )
Subject: Export credit insurance
Category: Business and Money > Economics
Asked by: kentucky1999-ga
List Price: $3.50
Posted: 20 Oct 2006 09:20 PDT
Expires: 19 Nov 2006 08:20 PST
Question ID: 775384
An alternative to using a letter of credit is export credit insurance.
 What are the advantages and disadvantages of using export credit
insurance rather than a letter of credit for exporting (a) a luxury
yacht from California to Canadian and (b) machine tools from N.Y to
There is no answer at this time.

Subject: Re: Export credit insurance
From: myoarin-ga on 20 Oct 2006 09:55 PDT
Here is the site of the US government on the subject:

and here is one by a commerical insurer:

If you are asking about one-off transactions, on the first site scroll
down and click on "Short-Term Single-Buyer Policy"

This site also explains, and points out that on-off transactions
usually cost more than a policy that covers ongoing export business.

I expect that the price is not the only consideration.  Claiming on an
insurance policy would be some paperwork, probably a delay in
receiving funds, and  - read the fine print -  may not cover 100%.

A commercial letter of credit is issued by the buyer's bank, based on
the payment and shipping terms and documents required.  You don't ship
until your bank has the L/C.   Almost the only thing that can go wrong
is war or the buyer's bank gong bust.

You can search with "commercial letter of credit" and find more information.

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