Key points
- In China it is provided by the state policy-based export credit insurer; common products are short-term export credit insurance (credit periods generally within one year) and medium- and long-term export credit insurance.
- Key steps: buyer credit check → buyer credit limit application → shipment declaration per lot → receivables tracking → notice of possible loss → claim and recovery.
- Policies set clear deadlines for shipment declarations, loss reports and claims, and missing them can affect payment.
In practice
The management focus of export credit insurance is deadlines. Every shipment must be declared within the set period; once a receivable is overdue, a possible loss must be reported in time; and claim documents must then be submitted as required. At high volumes, manual ledgers make it easy to miss a declaration or a deadline – and the gap in cover is only discovered when a loss actually occurs.
The credit limit also caps how much can be sold on open account to each buyer, so it should be linked to internal credit control: check the buyer’s remaining limit before shipment, and if it would be exceeded, apply for a higher limit or change the payment terms first. After a claim is paid, the company works with the insurer on recovery, and recovered amounts are shared as agreed.
How Tranexio supports it
Tranexio manages buyer credit checks, credit limits, policies, shipment declarations, claims and deadline alerts, checking the limit before shipment and linking it to unified credit limits. Data exchange (EDI) with the insurer can be connected via the integration hub. See Risk and compliance.