ADVANCE PAYMENT INSURANCE
The payment terms outlined in a contractual agreement are critical in establishing the roles and responsibilities of both buyers and sellers. Sometimes, acquiring capital goods from unfamiliar markets can pose significant challenges. Suppliers may demand substantial deposits or full payment prior to shipment, which can expose your business to a range of risks such as non-shipment or non-refund of deposits. Assessing the reliability of a supplier can be a difficult task, and as a result, many businesses struggle to obtain financing to satisfy the advance payment terms.
By utilizing Advance Payment Insurance, your business’ balance sheet will be protected and financing can be obtained even before the capital goods are shipped. Even if financing is not required, this product will still protect your financial interest in the asset.
WHAT IS ADVANCE PAYMENT INSURANCE?
Often used when purchasing capital goods
Suppliers frequently request an initial payment, which can entail financial risks. In cases where a supplier is unable to fulfill their obligation and fails to return the payment made prior to shipment, Advance Payment Insurance offers protection against default and can cover up to 90% of your financial losses.
KEY FEATURES OF ADVANCED PAYMENT INSURANCE
RISKS COVERED
Supplier insolvency
Unlawful contract termination by the supplier
Lawful contract termination by the buyer
Currency conversion and transfer risks
Import-Export permits cancelation
Government halt on international debts
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BENEFITS
Protect your deposits to vendors
Protect your balance sheet
Provide security to lenders
Applies both domestically and internationally
Forgo the need to pay in full and refinance later with lenders, thus conserving cash flow.
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RISKS NOT COVERED
Inter-company transactions
Contracts with hold backÂ
Amounts from unresolved disputes
Incorrect documentation issuesÂ
Payment made after shipment of the goods
MAIN INDUSTRIES
ManufacturingÂ
Construction
Commodity TradingÂ
Equipment supply
WHO ARE THE USERS?
Buyers paying vendors before shipment
Banks and creditors
Private Investors
HOW CAN WE HELP?
Our value proposition is focused on providing specialty insurance solutions that protect our clients' businesses against potential risks and financial loss. Our combined expertise in international trade and corporate lending sets us apart, and we are committed to helping your business expand and be successful in new markets.