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Suppliers’ Credit Insurance (c- Factoring & Invoice Discounting Insurance)

Suppliers’ Credit Insurance (c- Factoring & Invoice Discounting Insurance)
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​​The lending bank or financial institutions obtains an insurance policy from Saudi EXIM bank and provides financing to the exporter against their export receivables. If the importer defaults, the lending bank or financial institutions will first attempt to recover from the exporter if the financing is with recourse. If the exporter also defaults, the bank or financial institutions can file a claim directly with Saudi EXIM bank, which will compensate the bank or financial institutions for the loss.

Properties
Product Method

1- The Saudi Exim bank and the lender (Banks \ financial institutions) signs an insurance policy
2- The exporter signs an agreement with the lender that assigns exporter's receivables to the lender.
3- The lender liquidates the receivables in favor of the exporter.
4- If the importer fails to pay, in case of financing without recourse, the lender files a claim to Saudi EXIM bank.
5-If the importer fails to pay, in case of financing with recourse, the lender files a claim to Saudi EXIM bank.

Product Advantages

- Facilitating exporters' access to credit facilities.
- Collaborating with lenders (banks\ financial institutions) in structuring credit facilities for Saudi exports.
- Providing protection for the insured against credit risks.
- Reducing time of receivables costs for Saudi exporters.
- Enhancing export volume and competitiveness.
- Exchanging credit and financial information.

The Sectors Eligible to Benefit from The Product

All sectors except crude oil

Duration of Insurance Coverage

Not exceeding 15 years

Financing Limit for Coverage

Up to 90%

Eligibility

​Banks or financial institutions financing exporters​


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