Single-buyer Credit Insurance
This policy type covers one transaction or buyer over a twelve-month period. Coverage is available for both foreign and domestic obligors. Single-buyer insurance can be divided into three sub-categories, depending on the repayment terms offered:
- Short-Term - Repayment terms of one year or less; six months or less for non-capital goods
- Medium-Term - Repayment terms greater than one year and up to five years.
- Long-Term - Usually capped at seven year repayment terms, although there may be insurers willing to cover longer-term obligations under specialized text.
Note: Medium and long-term single-buyer insurance is typically not an option for the sale of non-capital goods.
There are a limited number of insurers that provide single-buyer credit insurance. Because the risk is concentrated, it is necessary to provide underwriters with a well-developed submission.