Foreign Exchange Invoice Payment Flows Insurance
You are an SME or ISE operating in the aerospace industry and you would like to secure framework agreements negotiated and invoiced in USD. Bpifrance Assurance Export protects your USD-denominated revenue over invoicing periods of 1 to 5 years.
Invoice Payment Flows Insurance protects sub-contractors in the aerospace sector against foreign exchange risk on their revenue after signing a framework agreement.
USD-denominated framework agreements in the aerospace sector expose you to Eurodollar exchange rate risk during the entire invoicing period. Foreign Exchange Invoice Payment Flows Insurance gives you better visibility over your proceeds and provides an opportunity to stimulate your export business. The insurance covers long-term foreign exchange risk (up to 5 years). The covered currency is the USD and the covered amount is defined for each calendar year, within the limit of 50% of projected revenue.
The insurance is designed for SMEs or ISEs operating in the aerospace sector, regardless the shareholder size.
As defined in Europe, an ISE is a business of fewer than 5,000 employees and revenue of less than €1.5 billion, or balance sheet total of less than €2 billion.
In the event of postponed delivery, the revenue can be carried forward to the next fiscal year.
Use of tunnels (max and min limits set around a pivot rate) reduces the cost of cover while protecting you against foreign exchange risk.
The premium rate is based on the risk profile and market conditions.
The premium is payable on signing of the insurance policy, for all fiscal years.