Letter of Credit Confirmation Insurance
You are a French exporter and you would like to secure cash payment of your export contract.
You would like to obtain an irrevocable confirmed letter of credit for the payment of your export contract.
Letter of credit confirmation insurance covers French or foreign banks which confirm the payment of the letter of credit against the risk of non-payment by the letter of credit-issuing bank.
Cover percentage may be raised from 95% to 100% for companies generating sales revenue ≤ €75 million.
There is no cost for the French exporter, as the non-payment premium is paid by the confirming bank.
The premium rate depends on the debtor’s country of residence, the status and capacity of the issuing bank, event of loss and duration of risk. This rate is applied to the amount of the insured letter of credit.