Benefit for Exporters

• Give a secure feeling for exporters to any export risks and encouragement to enter new export market with low premium rate.
• The exporters could offer or accept any terms of payment including Non-LC requested from the importers that relatively have higher risk such as Documents Against Acceptance (D/A), Documents Against Payment (D/P) and Open Account (O/A). All these terms of payment could be covered by ASEI.
• Exporters could accept market demands that come from importers in high country risks.
• Exporters could use Export Credit Insurance to obtain a discount export bill financing (post-shipment export financing) where the export credit insurance become additional collateral for banks.

Benefits for Banks

• Ease Banks providing post-shipment export financing through discount export bill owned by the exporters.
• Banks that obtain indemnification acceptance from exporters will benefit in added value for their discounted export bills.

Commercial risks

• Importers' bankruptcy
• Payment defaults by importers
• Goods rejected from importers

Political risks

• Transfer restriction
• Import quotas
• Import permit revocation
• War or other hostility

• Country grade of the importers
• Terms of Payments from the importers (L/C or Non L/C)
• Credit Time Period (maximum 360 days)

ASEI could cover any export transaction that use terms of payment by L/C (Sight L/C and Usance L/C) or Non L/C (Documentary Collection such as Open Account, Document Against Payment, Document Against Acceptance)

ASEI will indemnify maximum of 85% of the loss, while the rest of 15% will be borne by the exporters.

ASEI will determine the cover limit for each importer by using the total export invoice and the terms of payment used by the exporter.

The cover limit will be set derived from the importer credibility, exporter's trade experience with particular importer, terms of payment used, and importer's country grade.

Export Credit Insurance could be utilized as additional guarantee from exporter to banks or other financial institutions in order to have a discount export bill.

When the exporter receives financing of a discount export bill from bank, therefore if there is payment default from overseas buyer, the bank will acquire the indemnification right from the exporter. The exporter must sign the Indemnification Extension Letter to banks.

By indemnifying the loss to the exporter, it does not mean that the importer's payment liabilities will be disappeared. Every future payment from the importer will be distributed proportionally between ASEI and the exporter based on the share.