FAQ
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Finance program
Typically our average deal sizes range between $1 million and $50 million, however, we have no minimum or maximum constraints on deal sizes, this would be dependent on the credit capacity of the borrower.
If your company has been operating successfully for at least three years, and has financial statements to support this, please submit these to American Trade Finance along with a pro forma invoice/quotation of the equipment being financed. We will let you know within 48 hours if your company qualifies for our financing.
Yes. Our financing solutions give you the ability to select a loan that will best suit your requirements.
We require companies to have been operating for at least three years in order to qualify for our financing.
We are able to provide financing to most countries. Please contact us to find out more.
American Trade Finance takes pride in providing a seamless approval process. We always aim to have the financing in place by the time your equipment is ready to be shipped to you.
No. Equipment can be purchased from a local dealership or distributor. The equipment must, however, be manufactured in the US.
We require a deposit of at least 15% to be paid directly to the US exporter or exporter.
Expedited Loans
Currently, Expedited Loans are only available to purchasers in Turkey, Mexico, Brazil and South Africa.
An Expedited Loan can be fulfilled in as little as 30 days. However, this presumes that all the purchaser’s paperwork is in order on application. There may, of course, be unforeseen delays with any given transaction, but our turnaround time is an industry benchmark.
Accounts Receivable Insurance
Accounts Receivable Insurance (also known as Trade Credit Insurance or Export Credit Insurance) is a type of insurance product that protects businesses from losses due to slow-payment or non-payment by their customers. Essentially, Accounts Receivable Insurance insures a company’s accounts receivable balances (i.e. money that customers owe to the company) against the risk of non-payment.
In the event that a customer is unable or unwilling to pay for goods or services provided by the company, the insurance carrier will pay out a portion of the outstanding debt, typically up to 95%. This protection can help businesses avoid financial losses and maintain their cash flow, even when customers fail to pay their bills. Accounts Receivable Insurance is particularly useful for businesses that sell on credit terms, as it provides an added layer of protection against the risk of non-payment.
Just click here! Your premium will be based on a number of factors, including your industry, debt history, risk across your portfolio, and the quality of your customers. Once you’ve completed an application form, please send it to us along with your last month-end receivables ageing schedule. If you have any questions at all, please contact us in person.
This is based on your turnover, your business profile, your industry, the number of customers you deal with, and your previous loss history. Premiums can be paid monthly or quarterly, or in full, up front.
Accounts Receivable Insurance covers you for risks across all business sectors, and in over 200 countries with very few exclusions.
Yes. Standard credit periods are up to 180 days.
Buyers who are insolvent, or whose credit limits have been cancelled, as well as certain types or related parties or debtors that have been sanctioned cannot be covered. We also don’t cover transactions which occur outside the ordinary course of business.
No. We work with industry leading insurance carriers. We charge no fees to you, the customer, as we have standing agreements directly our insurance partners. Working with American Trade Finance allows you to take advantage of multiple quotes for your business and we work to find you the most comprehensive cover at the best available price.
Yes, it is possible to secure cover for specific customer via a Single-Buyer Insurance policy. Contact us to learn more.
Our relationship with you aims to be as transparent and as-easy-to-understand as possible. As the policyholder, you will need to update the credit insurer on any ‘adverse information’ during the course of the contract. Your declarations of turnover or balances, as well as the credit period of the transaction, must be accurate.
Transactions over the agreed credit limit are made at your risk. We can, however, increase the credit limit for an agreed period at relatively short notice. You can also opt for top-up cover at an additional premium.
Yes. We use this information to advise you if their financial situation is unstable, or if there are any judgements/claims against them so we can avoid unforeseen credit issues ahead of time.
Yes. Buyers can be easily added to existing policies, this often has minimal to no impact on the policy premiums.
trade credit insurance
Trade credit insurance, also known as Accounts Receivable Insurance (“ARI”) is a financial product that helps mitigate trade credit risk by protecting businesses against losses due to non-payment of trade debts, both domestically and internationally. It covers the risk of a buyer defaulting on payment for goods or services provided on credit, making trade credit insurance beneficial for businesses of all sizes across various industries and is crucial when expanding into new markets.
When you take out a trade credit insurance policy, the insurer assesses the creditworthiness of your buyers and sets a credit limit for each. If a buyer fails to pay within the agreed terms and conditions, you can file a claim with your insurer to recover a percentage of the outstanding invoice amount – the percentage of coverage will be stated on your policy (with typical coverage being 90%)
Trade credit insurance/ receivables insurance provides several benefits, including:
- Protection against customer insolvency or protracted default as well as political risks in international transactions (such as war, embargoes or currency inconvertibility).
- Improved cash flow and reduced bad debt reserves.
- Enhanced ability to secure financing, as insured receivables can be used as collateral.
- Confidence to extend more credit to existing and new customers, potentially increasing sales.
We can advise you on the most suited policy, by:
- Assessing your business’s specific needs and risk exposure.
- Comparing different offerings from a pool of high reputable insurers.
- Ensuring the chosen policy covers the markets you operate in and the buyers you sell to on credit.
Trade credit insurance can enhance customer relationships by allowing you to extend more favorable credit terms with confidence. It also provides a safety net, so you can maintain positive relations even if a customer faces financial difficulties, as the insurance mitigates the risk and potential impact on your business.
Trade credit insurance can hold the following benefits in place of traditional letters of credit:
Ease of use
- LCs involve banks and a significant amount of documentation and compliance, while trade credit insurance can offer protection without the need of complex arrangements.
Cost efficiency
- Using trade credit insurance can reduce the selling and distributions costs of your company, when compared to the fees and commissions associated with LCs.
Extended coverage and broader risk coverage
- Trade credit insurance can cover risks that LCs might not, such as post-shipment risks or political risks in international trade. This provides broader coverage for your receivables.
More flexibility
- Unlike LCs that tie up a buyer’s line of credit, trade credit insurance does not impact the buyer’s credit capacity. Leading to a more fluid and dynamic trade relationship, potentially improving cash flow for both you and your buyers.
Trade credit insurance protects against the risk of non-payment by buyers, whereas factoring involves selling your accounts receivable to a third party (the factor) at a discount in exchange for immediate cash. Factoring provides immediate liquidity, while trade credit insurance provides protection against potential losses.
