Insurance of short-term export receivables

If you are an exporter and have agreed, with the foreign buyer, the deferral of payment of up to 1 year, exceptionally up to 2 years, you can arrange an insurance policy for your short-term export receivables with HBOR and protect yourself against commercial and political risks.

Commercial risks are delay in payment by the foreign buyer or bankruptcy of the foreign buyer.

Political risks are: war or similar events, rebellion or revolution and government measures limiting or impeding transfer or free disposal of payments.

In HBOR you can insure your cash receivables against foreign buyers that you want to insure, and insurance policies can be arranged for one or several foreign buyers.

In case of non-payment by the foreign buyer, indemnity is paid to you by HBOR.

Advantages of an insurance policy

• Protection of business operations;
• Possibility of sale with deferred payment, increase in competitiveness and sales growth;
• Easier entry to new markets;
• Transfer of a portion of collection risk to the insurer;
• Easier access to sources of finance.

Key features of the programme

• You can insure up to 90% of receivable amount per foreign buyer;
• You are insured against non-payments caused by non-market and temporarily non-market commercial and political risks;
• Insurance premium accrues and is charged monthly, on the basis of realised export;
• Waiting period of 3 months is a warranty of the indemnity payment in short term;
• Simple and fast manner of arranging an insurance policy.

Since the buyer’s inability to settle its obligations is difficult to anticipate in advance, the insurance of short-term export receivables with HBOR is one of very efficient ways for preventing or reducing the loss occurrence.

Based on preliminary risk assessment, HBOR can provide free of charge and unbinding information on possibilities and terms and conditions on insurance for each foreign buyer.

General Terms and Conditions