The National Export-Import Bank of Jamaica (EXIM Bank) is encouraging exporters to take advantage of its Trade Credit Insurance (TCI) facility to protect their goods and services.
Speaking in an interview with JIS News, Manager, Business Origination at EXIM Bank, Allan Thomas, explained that TCI is a tool that an exporter or supplier can use to protect his/her business against default of payments by overseas buyers, in unforeseen circumstances such as the coronavirus (COVID-19) pandemic and when going into new markets.
“If you should sell goods and services to a customer on credit and after a period of 120 days the customer has not paid you, then under the TCI you would have the option of making a claim under the policy for the Bank to pay you up to 85 per cent of the amount that you have insured the goods or services for,” he noted.
Mr. Thomas informed that for persons to access the coverage, they would need to take out a TCI insurance policy and pay a fee of approximately $12,500 plus general consumption tax (GCT), once approved.
“When that policy is approved you are able to get a special buyer limit coverage,” he said.
Mr. Thomas said that an added benefit of the policy is the research that is done by the Bank when a policyholder plans to go into new markets.
“In taking out the insurance, you will now be getting information that you weren’t privy to before by us doing the checks on those customers that you will be selling to on credit terms,” he said.
“It is a must-have for exporters, but even in the local market, the policy is available for persons who are selling goods on credit terms to other local companies,” he pointed out.
The TCI policy can also be used to access working capital support from the EXIM Bank.
For further information, persons can contact the EXIM Bank at (876) 630-1400 or (867) 618-5889.