International companies buy an average  40 percent more when they are offered open terms, according to the World Trade Organization. Today, few companies can effectively compete without extending credit to their buyers. EXIM Bank credit insurance products will help exporters to reconsider their payments terms which may be based on advance payments or letter of credits.
Open terms credit facility exposes the exporter to the risk of non-payment of a foreign receivable against non-payment risks due to credit, liquidity or country risk related issues (war civil commotion, transfer restrictions etc.), which in turn makes it difficult for banks to provide required working capital financing.

EXIM Bank’s Credit Insurance program brings Pakistan based exporters at the same level playing field as their competitors who are supported by their country EXIMs’ and Export Credit Agencies.  With the Credit Insurance Program, many of Pakistan’s exporters will be able to offer open terms when letters of credit or prepayment may have previously been the only safe way to do business. The related policy can then be assigned to a bank as security.  In case of a non-payment due to the reasons provided above, EXIM Bank will pay the value of the insured receivable, and therefore protect the balance sheet of the exporter, and by extension, the balance sheet of the banks providing credit to the exporters.
Armed with Credit Insurance, exporters can grow their business in their current markets and explore new markets.

One unpaid invoice can mean the difference between profit and loss, and indeed bankruptcy.