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BANKS AND OTHER LENDERS 

An Experienced Credit Insurance Broker Can Make a Big Difference.

 

Banks who purchase credit insurance want to be confident the policy will offer the protection they purchased and respond in the event of a loss. Our credit insurance professionals have the experience and knowledge to understand the transaction being insured and making sure the desired coverage has been structured correctly. We take the time to understand the borrower's relationship to the lender including the nature of the trade finance structure to be insured, the exporter/importer whose performance is required, the repayment terms and the bank's uninsured exposure.

 

At CFS, we take pride in performing the appropriate due diligence at the front end, along with timely and responsive communication between the bank and the insurance companies prior to finalizing the terms and conditions of coverage. Our goal is to increase the bank's confidence that the credit insurance policy purchased will serve its intended purpose.

 

We help our bank clients seeking to:

  • Minimize risk of credit loss on financed receivables.
  • Obtain additional capacity to expand lending to existing clients when the total relationship with the client exceeds internal limits.
  • Lay off country, borrower and correspondent bank trade exposures due to internal limit considerations.
  • Attract/assist clients with options for asset management, including purchasing their U.S. and/or foreign accounts receivable.
  • Obtain additional risk protection on purchases of clients' accounts receivable.
  • Increase loan volume in domestic or cross-border trade finance business.
 

Value-Added Benefits

 
  • Attractive accounts receivable financing.
  • Use the insurance to: (1) lower the financing cost, (2) add foreign receivables to the borrowing base, (3) increase the advance rate on pledged receivables.
  • Facilitate the purchase of assets on a non-recourse basis.
  • "Purchase of Receivables" policies to insure the bank directly and allow pass-back of uninsured retention and any deductible to the seller.
  • Achieve a more competitive market position.
  • Increase capacity to assume country risk exposure or credit exposure to larger customers, and correspondents without compromising the bank's internal credit control procedures.
 

Types of Policies Available

 

Trade Finance

  • Non-cancelable coverage of bank's trade finance loans
  • Import Financing
  • Pre-export financing
  • Political risks or excess of loss credit insurance

 

Trade Letters of Credit

  • Comprehensive "Non-honoring" coverage
  • Single or multiple issuing banks
  • Confirming letters of credit
  • Accepting, discounting or negotiating drafts or documents under letters of credit.

 

Purchase of Receivables

  • Provides non-payment cover to the bank on its purchases of trade receivables
  • Bank as the named insured
  • Ability to pass back co-insurance to the seller
  • Premiums payable on actual purchases