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Export Payments Insurance |
EFIC’s Export Payments Insurance can help reduce your risk of loss in an export contract arising from defined political and commercial events. The loss insured can be an unpaid invoice, or the costs you have incurred in undertaking your contract which cannot be recouped, because your export contract has been frustrated or not performed. EFIC understands that for small to medium-sized enterprise (SME) exporters, the longer the payment period under your contract the greater the risk of non-payment and, consequently, the greater the pressure on working capital. Political risks may include the following events in your buyer’s country: - Hostilities, civil disturbances, administrative or legislative measures that prevent performance of your contract
- Imposition of laws, directives or decisions that prevent the conversion of local currency or block the international transfer of payments due under your contract
- Cancellation or non-renewal of your buyer's import permits.
Commercial risks may include: - Insolvency of your buyer
- Your buyer’s wrongful failure to meet contractual payment obligations to you.
Under an EFIC Export Payments Insurance Policy, you may be covered from the tme you first enter into your export contract for whichever of the following is higher: - the amount of the unpaid invoice; or
- the costs you have incurred in undertaking your contract which you cannot recoup,
resulting from your buyer's wrongful failure to meet its contractual obligations. Benefits at a glance - Reduces your financial risk by avoiding the setback of an unpaid invoice or your inability to to recoup costs you have incurred due to contract frustation
- Provides up to 100% cover against losses arising from defined political risks
- Provides up to 90% cover against losses arising from defined commercial risks
- Allows the proceeds of a valid claim to be assigned to your financier, or your financier to be co-insured under the policy, which may provide you with access to more working capital
- Assists in growing and securing new business by allowing you to offer more favourable payment terms to your buyers.
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Product Features Eligibility - Normally available for contracts in excess of $500,000
- A contract for the export of capital goods or services with a sufficient level of Australian content
- The export contract's payment period normally ranges between two and five years
- For further information see General Eligibility >
Political risk cover - Up to 100% for defined political risks.
Commercial risk cover - Up to 90% for defined commercial risks.
Terms & fees - Pricing is based on a number of variables including liability, duration, risk factors and security considerations.
Eligibility and Application For all applications and enquiries contact us at finance@efic.gov.au or call us on 1800 887 588 between 8.30am - 5.30pm, Monday to Friday (AEST), or if outside Australia on +61 2 9201 2111. | |
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