Introduction

The Saudi Fund for Development (SFD) provides its services of Insurance Credit Facilities through its Saudi Export Program to help the Saudi exporters to cup with their challenges of the export returns risks of noun-payment for either commercial or political factors.  
Furthermore, the service offers the tranquility of payment failures via compensating the exporter in case of non-payment potential issues as well as this service provides additional guarantees features to local banks instead of the exporter policyholders in case of having pre finance requests for the purpose of exporting its products.

 

Types of Policies to Exporters

Types of Policies

-   Exporters' Policies:    
A- Whole Turnover (several importers)
B- Specific Transaction (1 importer)

 

Features:  
• Risk Reduction: The Policy covers up to 90% of the sales invoice against any commercial or political non-payment risks.
• Enabling Saudi exporters to expand into existing markets and enter new markets as well.
• Gives more confidence status between exporters and importers.
• Identify the financial ability of the importers as well as observe any monitor changes in their financial behavior.
• Increasing the competitiveness of the exporter via reducing the cost of export by avoiding the use of providing letters of credit.
• Support the Saudi exporters to obtain better and cheaper banking facilities to finance their exports.
 

 

Types of Policies to The Commercial  Banks and Financial Institutions

A. Documentary Credit Insurance Policies (DCIP). (For multi foreign banks)
B.  Documentary Credit Conformation Contracts. (for a foreign bank)

 

Reduction risk: This document covers up to 90% of the value of letters of credit enhanced against commercial and political non-payment risk.
• Enable commercial banks to increase their capacity to enhance the credits issued by foreign banks for the beneficiaries of Saudi exporters.
• Enable commercial banks to cooperate with any foreign banks around the world.

 

Cooperating with banks and financial institutions

- Financing the Saudi exporters who covered by SEP's Policies.
- Monitoring cash flows for export sales.
- Increase the credit facilities to the exporters.
- Raise the capacity of providing more credit facilities to the exporters of SMEs.