For one New Mexico-based audio equipment manufacturer, export credit insurance has been the foundation for a steady stretch of international growth. Since 2020, the company has carried the same $1.25 million multi-buyer export credit insurance policy through EXIM Bank.
In five years, that single policy has supported more than $13.4 million in export sales. It proves that a modest limit, applied consistently, can generate results far beyond its face value.
How $1.25M Turns into $13.4M
What looks like a cap is really a revolving pool of capacity. The $1.25 million limit measures peak exposure at any given time. Once invoices are paid, coverage resets, and new orders fall under the same policy.
Over five years, that recurring turnover has multiplied the value of a $1.25 million policy into $13.4 million in export sales while keeping exposure both predictable and financeable.
For this manufacturer, that flexibility was crucial. Many of their international buyers are distributors who place recurring orders to replenish inventory. With insurance in place, those receivables become collateral that banks are willing to finance. That gives the exporter the working capital to fund the next shipment on schedule, even before the last one has been paid.
Why It Works for SMEs
For smaller manufacturers, the challenge is rarely finding demand. It is making sure the business can keep pace with orders while protecting working capital. Here, the policy has played three roles at once.
It has provided the protection needed to extend open account terms in competitive markets. It has turned receivables into collateral, giving the company more flexibility with lenders. And it has simplified renewals, reducing administrative overhead so the team can stay focused on customers rather than paperwork.
In short, the policy has been as much a sales enabler as a safeguard.
When This Multi-Buyer Structure Fits Best
This model works well for exporters with consistent international sales who want to grow without expanding risk.
- It gives smaller companies the ability to compete on open account terms without taking on the full burden of buyer credit risk.
- For mid-sized firms, it turns receivables into bankable collateral, which supports financing for the next shipment even before the last one has been paid.
- Larger exporters can use the same approach to manage exposure across multiple markets while keeping reporting and renewals consistent from year to year.
Whether an exporter ships $1 million or $100 million annually, the principle is the same: the value lies not only in the protection but also in the ability to keep sales moving, cash flowing, and risk contained.