Single Risk Structured Finance
CREDIT INSURANCE COVER FOR SINGLE CUSTOMERS
- An unforeseen POLITICAL EVENT that threatens the success of your operation: a conflict, civil war, revolution, etc.
- An arbitrary POLITICAL DECISION that creates an obstacle: your assets cannot be transferred, an embargo is declared, your public client or supplier is in breach of its contractual obligations, etc.
- Your private client, supplier or borrower fails to meet its commitments (payments, deliveries, repayments, etc.), or is declared insolvent.
FOUR GOOD REASONS TO CHOOSE SINGLE CREDIT RISK
- Protection against risks that are specific to business abroad
- Covers that are tailor-made in terms of risk assessment, scope and cost
- Individual policies that are customized and scalable
- Solutions that protect across multiple countries for single or multiple risks
CASE STUDY OF SINGLE RISK CREDIT INSURANCE
A manufacturer of industrial equipment is buying iron ore from a Chinese miner. The manufacturer advances the payment to be reimbursed through shipments over a 12-month period.
After 6 months, the Chinese government imposes a ban on iron ore exports to keep it for the domestic market, making it impossible for the Chinese miner to send its shipments.
Coface indemnifies the amount of advance payment not yet reimbursed by shipments, helping the company to minimize its loss.
A Singapore industrial company, specializing in bottling processing lines manufacturing, has signed a contract with a Thai beverage producer. Coface issues a policy to cover the breach and interruption of the contract due to political and credit risks.The beverage producer breaches its contract by announcing that it will not receive the equipment or pay for them because it has just gone insolvent. As Coface covers 90% of the industrial company’s losses, all expenses incurred till the point of breach of contract less the sums already received, such as a down payment, is indemnified.