What Is Short Term Single Risk Insurance?
In our last series, we discussed Medium Term Insurance; what it is, how it can benefit you, and how to get it.
In this three-part series, we will walk through Short Term Single Risk Insurance.
What is it?
Single risk insurance is typically between one seller and one borrower. Repayment terms are for no more than 360 days, while most are 180 days or less. Single risk insurance provides coverage against events of non-payment, commercial or political, associated with an open account sale between trading partners. It may also be used by lenders that want to insure short-term loans to their corporate borrowers.
This coverage can be used for a single sale or on a revolving basis for multiple sales over a given period of time. It can be used for sales to end-users, dealers, or distributors. In many instances, the seller is insuring consumable goods such as commodities, parts, etc., but it can also be used to insure sales of capital equipment.
Single risk insurance is beneficial when dealing with higher-risk countries or new customers with whom you do not have an extensive trading history. Insuring your sales can help you to compete while protecting your business against the risk of non-payment. In our next blog, we will talk about why you would consider using single risk insurance and how it can directly benefit you.
Impello Global provides advisory services to our clients rather than just acting as their broker of single risk insurance. Our approach is tailored to each client and individualized solutions are provided.
About Impello Global
Impello Global is a US based trade finance advisory boutique and trade credit and political risk insurance brokerage. We specialize in trade credit and political risk insurance and provide advisory services to companies and lenders who are looking to expand their trade finance capabilities.
If you are a company or a lender trying to better understand trade credit insurance or EXIM Bank programs and looking for guidance about how these programs can help improve working capital financing, our team would be delighted to learn more about your business and discuss options available to you. Please visit our website at www.impelloglobal.com or contact us directly at firstname.lastname@example.org.