An Irrevocable Letter of Credit provides guarantee / security for receiving your payment of export bills provided the terms and conditions of the letter of credit are strictly complied with. However, certain events of political nature in the buyer’s country could prevent performance of sales contract or transfer of funds. In such circumstances, the Export Credit Policy of Credit Oman provides you protection against such losses.

According to the policy, the premium is payable on actual export and domestic sales made to various buyers on whom credit limit have been issued and not on the credit limit amount. However, the Agency charges premium on sales declared by the policyholder in excess of credit limit due to the fact that those export sales made in excess of credit limit also be automatically covered once previous shipments are paid. If no premium is charged on those sales, it is off cover in accordance with the terms of the Policy in the event of non-payment by the buyer.

The insured percentage is up to 80% of loss against commercial risks and 85% against non-commercial risks.

The credit insurer issues a credit limit for every buyer with whom the policyholder trades. The level of the limit is set at the maximum amount that can be owed by the buyer at any given time. The granted credit limit is the maximum insured credit line for a specific buyer that operates on revolving basis and the policyholder can trade within the approved credit limit throughout the policy period without further reference to the Insurer.

Credit Insurance Policy is a risk management tool that helps the exporter to stabilize his/her cash flow and protect his/her trade receivables in the ever-changing competitive and economic business climate. The exporter can also enhance his/her borrowing power from financial institutions.

Export Credit Insurance provides risks protection to the exporter who sells on credit terms against non-payment by his buyers. Non-payment may be due to buyer’s insolvency, protracted default, non-acceptance of goods or economic and political conditions that are out of the control of the exporter and buyer.