Export credit insurance can be divided into two types - short and medium/long-term.
Consumer goods, raw materials and other similar items are normally sold on cash or short payment terms of less than two years. Your insurance broker or banker may be able to advise you on suitable insurers who will cover short-term risks.
If you plan to export capital or semi-capital goods or services with payment terms exceeding two years, you will need more specialist help. Specialist private sector insurance companies increasingly provide this kind of credit insurance. However, if you are unable to obtain export credit insurance from the private sector then you may be able to purchase government-backed export insurance from UK Export Finance. For more information, you can browse the index to guidance and application forms for UK Export Finance products and services available on the UK Export Finance website (link is external).
Make sure that the credit insurer understands the market in which you are selling, and that they can cover all of the potential risks that you are likely to face. If you are new to exporting, get recommendations from other businesses, from your bank or financial adviser.
