Export factoring insurance

The direct export factoring insurance provides protection for a range of interests of commercial banks and the Development Bank in financing exporters under assignment of receivables.

The voluntary international factoring insurance provides the financing bank with protection against the risk of a foreign debtor’s non-fulfilment of their financial obligations under an export contract, the receivables of which have been assigned by the exporter under a factoring contract, due to the occurrence of events constituting political and/or commercial risk.

Advantages:

• Increase of the accounts receivable turnover;
• Ability to provide resources under assignment of receivables within the exporter’s projects when a credit risk is too high for a bank;
• Reduced bank costs due to the avoidance of need for expensive banking instruments and mechanisms such as a letter of credit calculation, cooperation with foreign banks and factoring companies (import factors);
• Withdrawal of the bank’s need to collect the bad accounts receivable abroad.

Financing is carried out at rates in accordance with the Resolution of the Council of Ministers of the Republic of Belarus No. 495 dated September 11, 2025 "On Amendments to Resolutions of the Council of Ministers of the Republic of Belarus No. 262 dated May 5, 2021 and No. 58 dated January 24, 2023".

Procedure for collaboration:

1.    Conclusion of an export contract;

2.     Conclusion of a factoring contract;

3.     Delivery of products in accordance with the terms of an export contract;

4.     Assignment of receivables;

5.     Conclusion of an insurance policy;

6.     Financing;

7.     Non-payment under the terms of an export contract;

8.     Payment of insurance indemnity to bank and transfer of the right of claim to Eximgarant of Belarus;

9.     Submitting a request against the foreign buyer.

Documents required for the conclusion of an insurance policy:

·         Factoring and export contracts;

·         The Insured’s title documents;

·         Foreign buyer’s title and financial documents;

·         Creditor’s title and financial documents (in recourse factoring).

Procedure for the Insured to follow the occurrence of an accident that may be considered an insurable event under the terms of insurance policy:

The Insured is obliged to submit the required documentation (no later than 30 calendar days following the end of the waiting period):

1.     Original version of an insurance policy;

2.     Documents proving the occurrence of an insurable event and the amount of damage incurred;

3.     Debtor’s and creditor’s written explanations regarding the reasons of non-payment;

4.     Documents confirming actions taken to avoid and/or reduce potential losses;

5.     Claims against the creditor to recover the amount of damage (in the Insured’s recourse).

For inquiries regarding this line of business, contact the Export Credit Insurance Department or any Eximgarant of Belarus’s branch:Tel/Fax: +375 (17) 371-00-65.