When a Small Limit Unlocks Big Sales
Many exporters assume credit insurance only makes sense for million-dollar deals. But one New York–based lumber exporter showed how even a $45,000 policy can move markets.
Since 2020, they’ve held a single-buyer export credit insurance policy through EXIM Bank. On paper, the limit looks modest. In practice, it’s supported nearly $926,000 in shipments to a key buyer in Mexico.
Why This Stands Out
This wasn’t about size. It was about structure. By using EXIM’s insurance strategically, extending the terms their buyer wanted while protecting against default, they turned a modest limit into a dependable sales engine.
A few highlights:
- In year one, sales under the $45,000 policy topped $94,000.
- By 2023, the same policy supported nearly $300,000 in export sales.
- And over five years, they turned a modest cap into nearly $1 million in insured sales.
By aligning coverage with their buyer’s needs, they secured loyalty, repeated orders, and steady international revenue, all without taking on unmanageable risk.
Why This Stands Out
Export credit insurance isn’t just about scale. It’s about confidence.
Here’s how a “small” policy makes a big difference:
- Open account flexibility: Instead of requiring prepayment or letters of credit, the exporter can offer competitive repayment terms.
- Rolling protection: The credit limit resets as receivables are paid, enabling multiple cycles of orders throughout the year.
- Risk transfer: With 90% coverage against both commercial default and political risk (for single-buyer policies), the company can extend credit without carrying the full downside on its own books.
Why It Matters for SMEs
This case shows that you don’t need a multimillion-dollar limit to benefit from EXIM’s tools.
For small and mid-sized exporters, even a $25,000–$50,000 policy can:
- Win a customer you’d otherwise walk away from
- Support more frequent or larger orders without overextending
- Free up working capital by turning receivables into financeable assets
And here’s why that works in practice. The math is simple but powerful:
- Step 1: The exporter ships under the $45,000 limit, on 60–90 day terms.
- Step 2: EXIM coverage ensures 90% protection if the buyer defaults.
- Step 3: The buyer pays. The limit resets. The exporter ships again.
Each payment reopens the full $45,000 for the next order. Over time, that rinse-and-repeat cycle is what turned a modest ceiling into nearly a million dollars in secured export sales over five years.
It’s proof that credit insurance isn’t just for the giants. It’s for the grinders, the builders, the businesses growing global one container at a time.
When Single-Buyer Coverage Works Best
This approach may be a fit if you:
- Rely on one or two key international customers
- Want to offer open account terms without all the risk
- Need a way to secure receivables for financing
- Are testing new export markets but want guardrails in place
Not every exporter needs $1M in coverage. Sometimes, $45,000 is exactly enough — if you know how to use it.