Payment Security: Export Credit Insurance ensures that exporters are paid even if their foreign customers fail to meet their payment obligations. This reduces the possibility of nonpayment and improves financial security.
Cash Flow Management: It protects businesses from the disruption caused by unpaid invoices and poor debts to maintain a stable cash flow. This is necessary for business operations and expansion.
Diversification of the market allows exporters to explore new markets and diverse customer bases, thereby reducing their reliance on a single market or customer.
Export Credit Insurance disperses the risk of non-payment across multiple transactions, mitigating the impact of losses on individual export transactions.
Exporters with credit insurance are more likely to obtain working capital and trade financing from banks, as their insured receivables offer a higher level of security to lenders.
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Tags: international trade trade finance services,
