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Suppliers’ Credit Insurance (b- Working Capital Finance Insurance)

Suppliers’ Credit Insurance (b- Working Capital Finance Insurance)
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​The lending bank or financial institutions obtains an insurance policy from Saudi EXIM bank, which then compensates the bank or financial institutions if the exporter is unable to repay the financing of the export working capital. Saudi EXIM bank subsequently recovers the amount from the exporter and shares a portion of the recovered funds with the lending bank or financial institutions, after deducting fees and costs.

Properties
Product Method

1- The lending bank enters into an insurance policy contract with Saudi EXIM and pays the insurance premium.
2- The lending bank provides financing to the Saudi exporter for their working capital needs In case the exporter fails to pay, the lending bank files a claim to Saudi EXIM, which indemnifies the lending bank for the loss.
3- Saudi EXIM recovers the amount from the  exporter and returns a share to the lending bank according to their risk-bearing ratio after deducting fees and legal costs.

Product Advantages

- Facilitating exporters' access to credit facilities to cover operational needs and finance the purchase and payment of deferred receivables for export production inputs.
- Enabling exporters to manage accounts payable payments for complex supply chains and extended payment terms.
- Reducing financing costs for Saudi exporters.
- Increasing export volume and access to high-risk markets.

The Sectors Eligible to Benefit from The Product

All sectors except crude oil

Duration of Insurance Coverage

Not exceeding 24 months

Financing Limit for Coverage

Up to 90%

Eligibility

​Banks or financial institutions financing exporters​


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