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

Foreign Exchange Invoice Payment Flows Insurance

Presentation

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.

Benefits
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.

How much?
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.

 

About the Exchange risk insurance

In conducting Over The Counter trades, your buyer sometimes imposes an offer in a currency other than the euro to sign the contract. You are a French exporter and would like to avoid any foreign exchange risk. Bpifrance Assurance Export protects your local-currency exports by setting a fixed exchange rate.

Presentation

Exchange Rate Insurance meets your needs and is tailored to your transactions:

  • By protecting you against foreign exchange risk on offer prices denominated in a foreign currency thanks to the foreign exchange trade insurance,
  • By allowing you to finalise more advanced deals denominated in local currencies without incurring exchange rate risk against the euro thanks to the foreign exchange contract insurance,
  • By allowing you to secure your USD-denominated revenue in the aerospace sector thanks to the foreign exchange invoice payment flows insurance.

How it works?

On receiving an insurance request, we return a guaranteed forward rate proposal.
For Foreign Exchange Trade Insurance, French exporters may submit an insurance request as long as the deal is still being negotiated with the buyer.
For Foreign Exchange Contract Insurance, the insurance request may be submitted as soon as negotiations begin, and up to the 15th calendar day (inclusive) after the commercial contract is signed.
Bpifrance Assurance Export delivers a notification of approval to the company, setting forth the terms and conditions of cover.
Based on the payment schedule submitted by the French exporter, Bpifrance Assurance Export liquidates the covered term for the amount and at the date of each scheduled payment. If the liquidation results in a foreign exchange loss, the insurance entitles the French exporter to compensation. If, however, the liquidation results in a foreign exchange gain, the French exporter is required to return the amount of the foreign exchange gain to Bpifrance Assurance Export within 15 days of the payment date.

Documentation

Our partners

Other offers you might be interested in

International Expertise

International Expertise to support foreign countries and help them create or develop their own tools to finance their economy.