Medium term export payments insurance 

 Medium term export payments insurance 

In general, the longer the payment period in your export contract, the higher the risk of non-payment by overseas buyers and the greater the pressure on your working capital.

If your export contract has a payment period of more than two years, export payments insurance from Efic can protect you against the risk of non-payment due to defined commercial and political events. Commercial events may include your buyer’s insolvency or their wrongful breach of contract payment obligations. Political events may include war, civil war and riot, the application of foreign laws that interfere with the contract and the inability to convert local currency or to transfer currency out of your buyer’s country.

What are the benefits?

  • Helps to protect your export payment stream by reducing your financial risk
  • Provides up to 100% cover against non-payment due to defined political risks
  • Provides up to 90% cover against non-payment due to defined commercial risks
  • Enables you to offer buyers extended payment terms, making you more competitive. 

How does export payments insurance work? 

 Work flow diagram for export payment insurance

  1. You enter into an export contract with your overseas buyer which gives your buyer extended payment terms
  2. Efic provides export payments insurance to you, covering you against the risk of non-payment by your buyer due to defined commercial or political events.

Terms and conditions

Terms and conditions will be negotiated during the application process. The following guidelines provide an indication of typical requirements:


You should be an Australian exporter producing goods or services for export which have substantial Australian content. Read more about Efic's Australian content guidelines.

Generally, the export contract to be covered by the insurance policy will have a minimum value of $500,000.

Level of cover

The level of indemnity is generally up to 100% for any loss resulting from defined political events and 90% for defined commercial risks.

Maximum Amount

Generally limited to 85% of the export contract value.


The export payment period will normally be a minimum of two years and a maximum of five years.

Fees & charges

Fees and charges vary depending upon a number of factors including Efic’s risk assessment and the term of the policy.


No security is required.


Exclusions will be set out in the policy.

NOTE: The information provided, including on terms and conditions, is supplied as a general guideline only. Efic’s compliance with legislation and OECD guidelines, together with its credit assessment and other policies, influence the actual terms and conditions that may be applicable to any eventual transaction with Efic.

The information provided does not comprise advice or a recommendation and Efic makes no representation or warranty relating to it. To the maximum extent permitted by law, Efic will not be liable for any direct or indirect loss or damage incurred by any person on the basis of this information.