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Buyer Credit Insurance

Buyer Credit Insurance
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​This product protects banks and financial institutions providing buyer credit financing from the risk of non-payment. The lending bank gets an insurance policy from the Saudi EXIM bank, which then compensates the bank if the importer defaults. Saudi EXIM bank recovers the amount from the defaulting importer and shares a portion 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 importer to purchase from the exporter.
3- In case the buyer fails to pay, the lending bank files a claim to Saudi EXIM, which compensates the bank for the loss.
4- Saudi EXIM recovers the amount from the buyer and returns a share to the lending bank according to their risk-bearing ratio after deducting fees and legal costs.

Product Advantages

- Providing support for banks and financial institutions in structuring credit facilities for Saudi exports.
- Protection against credit risks.
- Facilitating exporters' access to credit facilities.
- 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 15 years

Financing Limit for Coverage

Up to 90%

Eligibility

Financing banks or financial institutions​


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