Export credit insurance: don't leave the country without it.(Headline)

There is a lucrative and relatively unknown financing tool that businesses large and small can use to expand their horizons. If the desire to export your product overseas seems appealing, then export credit insurance is something to be looked into. Export credit insurance is sold to companies attempting to sell abroad, but which carry valid concerns over the risk of selling to foreign buyers.

Credit insurance is an invaluable thing to have if you own a small business with such prospects. The insurance covers all commercial and political risk involved with the exporting business; and, by having export credit insurance, banks will begin to count foreign accounts receivable when they otherwise wouldn't. Having insurance on one's receivables will entice the bank to lend more since the risk is minimized. It also streamlines the process of selling one's product to foreign buyers: today's international market doesn't look at letters of credit or cash in advance as an extension of competitive terms in comparison to export credit insurance. Foreign markets are usually not very receptive to cash in advance for obvious reasons, especially with large orders, and letters of credit can be time consuming and constricting for both parties involved. In some countries, it is not possible to even obtain a letter of credit.

It is surprising this tool of finance hasn't been utilized more in ...