1. UNLOCKING THE VALUE OF
TRADE CREDIT INSURANCE IN GETTING YOUR PRODUCTS AND SERVICES TO THE MARKET

2. TCI OVERVIEW WHAT IS Trade Credit Insurance (TCI)?
Trade Credit Insurance facilitates trade; allowing suppliers to sell goods and services without having to worry about not being paid by their customers

3. TCI OVERVIEW
TCI offered by EXIM Bank covers both foreign and domestic receivables against commercial and political risks of non-payment by buyers
Coverage of commercial risk is automatic, however coverage of political risk attracts an additional premium

4. TCI OVERVIEW
Commercial Risk: Risk of non-payment as a result of bankruptcy/insolvency of buyer, the buyer’s repudiation of the debt or the buyer’s protracted default
Political Risk: Risk of non-payment for political reasons, e.g. war/civil disturbance, exchange transfer, cancellation of import/export licence

5. TCI OVERVIEW Eligible Transactions
The product is available only to companies registered in Jamaica and covers:
Export sales of goods and/or services
Domestic sales of goods only
3rd country sale of goods originating outside of Jamaica, on behalf  of Jamaican companies

6. TCI OVERVIEW Eligible Transactions (cont’d)
Sale of goods supplied by subsidiaries of Jamaican companies  located and operating within CARICOM
Sale of goods transhipped from Jamaica’s duty-free zones to countries within the Caribbean region

7. FEATURES OF TCI Risk Coverage Commercial Cover
EXIM Bank covers 85% and the Insured bears the remaining 15%
Political Cover
EXIM Bank covers 90% and the Insured  bears the remaining 10%

8. FEATURES OF TCI Premium Rate
Policyholders are assigned a single composite rate covering commercial risk for both the export and domestic markets
Basic premium rates range between J$ J$0.60 per J$ of gross invoice value of each shipment. 
Political cover attracts an additional rate that may range between J$0.03 – J$1.45 per J$100.00

9. FEATURES OF TCI Credit Limits
Under the terms of the TCI Policy coverage is available under the following Limits
Discretionary Limit
- US$3, for unsecured transactions
- US$5, for secured transactions
This provides automatic coverage of small buyers for which sufficient credit information is unavailable to conduct to credit assessments. The policyholder is therefore required to perform its own due diligence on the buyers prior to establishing trading relationships

10. FEATURES OF TCI
Special Buyer Credit Limit (SBCL) For all transactions exceeding the Discretionary Limit, the policyholder is required to apply for a SBCL which is determined based on an assessment of the buyer’s financial status and creditworthiness

11. Why TCI?
In answering this question here are some questions to consider:
Have you ever experienced credit losses, especially with buyers overseas?
Do you regularly sell to new customers and markets?
Are you concerned about the credit or country risk associated with growing your customer base overseas?

12. Why TCI?
Receivables are often the largest uninsured asset on a company’s balance sheet even though it may also be the primary source of revenue.
In the same way that a company considers it prudent to insure its fixed assets, it is also in its best interest to insure its receivables, the base of its existence

13. Access to Working Capital Financing
Insurance Policy Discounting Facility (IPDF)
A major benefit of TCI is the potential access to post-shipment working capital financing, as the policy can be used as collateral for the Bank’s Insurance Policy Discounting Facility (IPDF)

14. Access to Working Capital Financing
Insurance Policy Discounting Facility (IPDF)
Under the IPDF the policyholder may discount up to 80% of its receivables, under an approved revolving credit limit
This credit limit is based on an assessment of the policyholder’s financial status, as well as the approved Special Buyer Credit Limits
Loans are extended for a maximum period of 120 days

15. Key Values of TCI
Having a TCI policy allows you to sell with confidence, safeguarding your company against the risks of domestic or overseas customer insolvency and non-payment
Marketing Tool
- Facilitates expansion into new untapped markets
- Allows flexible credit terms & competitive pricing
- Allows better credit control against catastrophic bad
debt losses
Marketing Tool :
-Facilitates expansion into new untapped markets
(without worry of non-payment of receivables)
-Allows flexible credit terms and competitive pricing
(thereby strengthening relationships with buyers)
Allows better credit control against catastrophic bad debt losses
The protection it provides allows a company to increase sales to grow their business. Insured companies can sell on open account terms which, for exporters especially, can be a major competitive advantage.

16. Key Values of TCI Financing Tool
- Access to bridge financing while you await payment of
outstanding receivables
- Improved cash flows
Risk Management Tool
- Protects your company from bad debt and insolvency
Financing Tool
- Access to working capital (while you await payment of outstanding receivables)
- Improved cash flows (because you receive payment for unpaid invoices that are insured)
Risk Management Tools – Protects your company from bad debt and insolvency

17. No of Claims
Excellent claims experience to date. This can be viewed on one hand as good for the Bank from a financial perspective, but on the other hand, disadvantageous from a marketing/’selling’ point of view as many policyholders have not had tangible benefits from buying an ECI policy .
Coverage is dependent on
Thank You