Advance Payment Insurance (API)

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Protect yourself from a potential loss when a supplier cannot fulfill their obligation and return any advance payments made before shipping.

Example: Where a manufacturer requires a downpayment or progress payments during manufacturing and before delivery of equipment purchased. Financial institutions supporting this transaction may require API solutions to help address downpayment exposure.

Insurable commercial risks:

  • Supplier insolvency
  • Unlawful contract termination by the supplier
  • Lawful contract termination by the customer

Insurable political risks:

  • Problems with currency conversion and transfer
  • War and related disturbances
  • Required permits, licenses or approvals are cancelled or expire.
  • Foreign government declares halt to paying international debts