TRADE & POLITICAL RISK PROGRAMS
NaviTrade is one of the
leading providers of a wide range of trade finance and
political risk services - including Trade & Political Risk Programs.
Trade & Political Risk Programs are mechanisms that can protect a
company's international and domestic transactions and global investments.
NaviTrade maintains relationships with the premier underwriters
around the world involved in this area, each with its own unique range
of expertise and programs that can be structured to help NaviTrade's clients
achieve financing, risk management, and marketing objectives. For NaviTrade's
clients this represents a knowledge and relationship base that translates
into strategic, global solutions.
FOREIGN & DOMESTIC CREDIT
These programs involve the support of an underwriter that protects a company
against non-payment by domestic and/or overseas buyers for virtually any
Foreign and domestic credit insurance protects against political and commercial
risks which cause defaults. Commercial risks are defined as buyer insolvency
and/or protracted non-payment of your invoices. These problems could occur
for many reasons, such as fluctuations in demand, natural disasters, or
general economic conditions in your customer's country. Political risks
include war, civil strife, and revolution, as well as currency inconvertibility,
government expropriation of a buyer's assets, and changes in import or
Fees/premiums are usually based on the terms you extend, the spread of
buyer and country risks, and your previous transaction experience. The
costs can be low - often times considerably less than the costs associated
with letters of credit or the costs of increasing a company's in-house
credit & collections capabilities. Whether or not you pass this incremental
expense on to your customers, the price of the coverage is insignificant
compared to the additional business you can win by extending more competitive
credit terms to your buyers.
"NaviTrade is one of the leading providers of a wide range
of trade finance and political risk services"
Eligible Transactions / Products
NaviTrade's clients include companies in almost all industries and involved
in producing products or offering services including capital equipment,
spare parts, raw materials, durable goods, consumer goods, commodities,
services contracts, intellectual property and many other areas.
NaviTrade's clients are involved in transactions/investments globally,
including the following markets; North America, Central America, South
America, Caribbean, Western Europe, Eastern Europe, the Pacific Rim, Southern
Asia, Middle East, Africa, and other markets.
Overseas & Domestic Buyers
NaviTrade is regularly involved with facilitating the financing of client
transactions involving overseas and domestic manufacturers, dealers, distributors,
end-users, private companies, state-owned enterprises, government agencies,
and quasi-public associations, and other groups.
In addition to protecting the riskiest part of your asset portfolio, credit
insurance programs enable you to obtain more favorable financing by including
your insured receivables in your borrowing base. NaviTrade's clients can
assign the rights to any claim payments by naming your bank as the loss
Extending Better Terms To Your
If your company has a successful track record with managing international
and domestic sales, you can extend terms to your buyers based on your
own internal procedures - or based on a set of user-friendly rules that
comprise the program. Even if you are relatively new to extending terms
in certain markets, programs can be established that will allow a company
to set-up open account terms and larger credit limits to buyers in advance.
When a company's efforts to collect form a past-due buyer are unsuccessful,
a claim can be filed with the underwriter and payment will be pursued
through international channels. Properly documented claims are typically
paid quickly, even if recovery efforts are still in process.
Government and Private Sector
NaviTrade maintains relationships with the premier trade & political
risk underwriters around the world. All of the programs that would be
considered viable solutions for NaviTrade clients are fully backed by
the U.S. government, foreign government agency, or top-rated commercial
insurance companies (e.g., highly rated by A.M. Best, S&P, Moodys,
or other rating agencies). Government programs usually cover the largest
number of countries and include special features for small businesses
and new exporters. Private sector programs generally offer greater flexibility
and lower premiums. By maintaining a comprehensive knowledge of the available
markets and providing the widest selection of coverages available, NaviTrade
can custom-design your credit insurance program and keep it up-to-date
as your business grows.
Multi-Buyer and Single Buyer Coverage
A company's entire portfolio of domestic and foreign receivables can be
covered under one multi-buyer program. The broader the spread of risk,
the lower the cost. Single Buyer programs are available to cover a specific
order or all of your sales to an individual customer. Multi-buyer program
fees are paid monthly, quarterly, or annually based on your actual shipments,
whereas single buyer programs are paid for in advance.
Short-Term and Medium-Term
Coverage of sales on terms of 1 to 180 days, or up to one year for capital
goods, is considered short-term credit insurance. All types of products
and services are eligible for short-term coverage. Under medium-term programs,
you or your bank can extend financing for one to five years to buyers
of capital equipment, turnkey projects, and other large-ticket exports.
Most programs include non-acceptance coverage, which protects against
a buyer's failure to take delivery of your products. Pre-shipment coverage
is available for customer-manufactured goods or items with long factory
lead times. Additionally, consignment sales, shipments from a foreign
warehouse, distributor floor plans, and equipment leases can all be structured
as covered transactions.
NaviTrade becomes a part of your team, develops and understanding of your
business and objectives, and strategically works to establish the right
program for your needs. Within 2-3 weeks you can have a program in place
that will dramatically, positively impact your operations.
POLITICAL RISK PROGRAMS
Political risk programs are available to protect a company's financing
and investing opportunities outside of the United States. Such programs
can provide protection from non-payment risk from both foreign government
and non-government buyers. The risk of non-payment from a foreign government
is covered for any reason, while non-payment risk from a foreign private
buyer is covered for certain defined risks only.
most common risks covered are for losses due to expropriation, confiscation
or nationalization of an investment or project, currency inconvertibility/transfer
risk, war/civil strife, and license cancellation.
As one of the leading providers of a wide range of trade finance products
and political risk services in the United States, NaviTrade maintains
relationships with the premier Trade & Political Risk underwriters
around the world, each with its own unique range of expertise, including
such groups as:
AIG Trade & Political Risk
Chubb & Company
CNA / Continental Insurance Co.
Exporters Insurance Company
Export-Import Bank of the United States
Euler / ACI
FCIA Management Co.
Gerling / NCM
Lloyd's of London
Overseas Private Investment Corp.
Small Business Administration
The World Bank Group
Trade Underwriters Agency
Various other global speciality underwriters