Although flexible and diverse collection methods can increase the competitiveness of export enterprises, the risks are correspondingly increased. Export credit insurance adds a safety factor to the collection of foreign exchange. Export credit insurance is based on the foreign buyer's credit risk in export trade and overseas investment, and the credit insurance that the export enterprise should enjoy in the execution of the export contract as the insurance mark. Export credit insurance is a non-profit policy insurance business. The state provides financial insurance reserves, which is formulated by the state to promote domestic export trade and guarantee the security of foreign exchange collection of export enterprises. At present, the Export-Import Bank of China and the People's Insurance Company of China can provide export credit insurance services. Exporters' insurance for export credit insurance not only guarantees the security of foreign exchange collection, but also enhances their competitive position and ability in the international market. It can also implement the "export diversification" strategy to further explore new markets. The insurance can also provide exporters with a buyer's credit investigation service, which enables exporters to obtain the convenience of financing, help solve the problem of capital turnover, expand business capacity, and recover debts and reduce losses of enterprises and countries. Export credit insurance category At present, the insurance liability of export credit insurance includes commercial risks and political risks. Commercial risks include: the buyer is unable to pay the debt and goes bankrupt, the buyer rejects the goods and refuses to pay the purchase price, and the buyer defaults on the payment. Political risks include: the buyer’s state prohibits or restricts exchange, the buyer’s national import control, the buyer’s state withdraws the import license, the third country that the buyer’s country or payment is required to issue a deferred payment order, war, riot or revolution, and the insured and the buyer Unusual events that are uncontrollable. According to Ms. Cai Wei of the International Insurance Department of the Guangdong Branch of the People’s Insurance Company of China, the export credit insurance has been insured, and the above-mentioned risk loss of the exporter will be compensated. In 1998 alone, they paid more than $830,000 to exporters and nine benefited exporters due to risks such as bankruptcy, arrears, refusal to pay, and the Southeast Asian financial crisis. According to the different credit terms stipulated in the export contract, the export credit insurance business is divided into two categories: short-term export credit insurance and medium- and long-term export credit insurance. Short-term export credit insurance is applicable within 180 days and no longer than 365 days, and commercial credit payment is adopted. Short-term export credit insurance can help exporters ensure collection, export financing and buyer surveys. Medium and long-term export credit insurance is applicable to exports with a credit period of more than one year and generally no more than 10 years. How to save insurance costs Although many exporters know about export credit insurance, few people care about this kind of risk. According to Ms. Cai’s analysis, this is mainly due to the issue of insurance premiums. Export costs remain high, there is no use of space, and it is even more difficult to increase profits by adding certain export credit insurance premiums. In this case, most exporters prefer to follow past practices. So, how can we buy export credit insurance and save some money? First, before signing a contract with a foreign company, it should be considered as a normal cost item. Ms. Cai said that if the exporter can strictly abide by the provisions of the insurance clause, fulfill the obligations of the insured, resolutely put an end to the phenomenon of picking up insurance, missing or deliberately not reporting, and truthfully fill out the export declaration batch by batch, and pay the insurance company as scheduled. Insurance premiums, and actively cooperate with insurance companies to do risk prevention work, can make insurance premiums lower. Because, in the first place, the rate of export credit insurance depends on the risk category of the buyer's country, the degree of risk of payment methods and the length of the billing period. The exporter should carefully select and comprehensively control before and after the transaction; secondly, from insurance In normal operation, an insurance company must implement its basic function of compensating for economic losses by raising and establishing an insurance fund, and the financing of the insurance fund is accumulated in the form of collecting insurance premiums. Advertising Election Cap,Fashion Sports Cap,Promotional Cap/Hat,Custom Fashion Hat Hoodies,T Shirt,Other T Shirt,Jacket Co., Ltd. , http://www.antonygarment.com