Gain international competitive advantage by insuring your deferred payment export transactions

New customers receive increased discounts at EXIM Hungary

A The constant global economic uncertainty, longer customer payment terms, and the fragility of global supply chains pose serious challenges for exporting companies. Potential political instability abroad and customer non-payment pose additional risks that require conscious financial risk management. The Hungarian Export Credit Insurance Company (MEHIB Plc.), a member of the EXIM Hungary institutional pair specialised in insurance, offers solutions to these challenges. Insurance for deferred payment, short-term export receivables is now available to new customers with additional benefits, including a premium discount of up to 50 per cent.

The pandemic, the energy market crisis and geopolitical tensions have all demonstrated that even partners considered reliable can encounter payment difficulties. In such cases, it is not necessarily the success of a particular transaction that is at risk, but the financial stability of an entire company. One of the fundamental characteristics of international trade is that a significant proportion of the transactions is carried out with deferred payment. Foreign buyers settle their invoices after delivery, sometimes several months later. While this can make Hungarian offers attractive, it also represents a significant exposure for sellers.

According to Allianz Trade’s latest report from March 2025, global insolvencies are expected to increase by 6 percent this year, with a further 3 percent increase forecast for 2026. Based on Coface’s regional analysis, corporate bankruptcies in Central and Eastern Europe rose by 3%, mainly in the transport, manufacturing and construction industries. These figures clearly indicate that risk is a business reality for Hungarian exporters. While deferred payment is an attractive offer for foreign buyers, businesses without insurance could suffer serious financial losses.

MEHIB Plc., the insurance branch of EXIM Hungary consisting of two institutions, supports risk management for Hungarian companies entering foreign markets with targeted insurance products. Among others, MEHIB provides insurance for deferred payment export transactions, which is now available to new customers with a premium discount of up to 50 percent.

The aim of EXIM Hungary is to help as many Hungarian companies as possible to confidently enter markets beyond the European Union and developed OECD countries, and to ensure that domestic exporters do not lose out on new business opportunities due to risks, but can expand their presence in foreign markets in a predictable manner.

Deferred payment risks should be managed using professional tools. MEHIB’s Facility C insurance for deferred payment export transactions offers a solution, providing effective protection against customer non-payment and political risks in foreign countries, whether it be armed conflicts or foreign government measures that impede the receipt of the purchase price.

In addition to reducing financial risks, Facility C insurance can provide exporters with predictable cash flow, making their business more profitable. By improving receivables management and helping to minimize doubtful debts, the insurance contributes to increased turnover and profits. In the event of non-payment by a foreign buyer, MEHIB not only compensates exporters for their losses, but also relieves them of the burden of lengthy collection procedures.

In addition, Facility C insurance offers a number of other advantages:

• Excess starting at 1 percent – in the event of a claim, a high percentage of the claim can be recovered, as MEHIB can reimburse up to 99 percent of the claim value.
• Buyer analysis and risk rating – MEHIB experts regularly analyse the solvency of foreign partners and rate their risk, helping exporters make business decisions.
• Extended financing options – through claim purchase combined with insurance, exporters can receive the value of the transaction immediately.
• Extendable to the manufacturing period – Facility C insurance can also be requested with supplementary insurance that provides coverage when a custom-ordered product is still in production and has not yet been delivered.

MEHIB’s Facility C insurance is not just about risk management: having insurance can make it easier to obtain credit, as it can be offered as collateral when involving external sources, thereby improving the creditworthiness of the business. In addition, it offers a unique opportunity for exporters to attract new customers, as offering deferred payment can be a significant competitive advantage in negotiations with foreign partners.

To prepare for entering or expanding in export markets, it is essential to understand the financial stability and credit risks of the target countries. Further assistance in this process is provided by EXIM Hungary’s regularly updated online country risk map, which provides a comprehensive overview of the economic and political risks of each country with a wealth of useful information, thereby supporting informed business decisions and exporters’ market knowledge.

Insurance for deferred payment export transactions is now available on particularly favourable terms for new customers of EXIM Hungary: a premium discount of up to 50 percent is offered for the first two years of insurance, provided that the company meets the annual export turnover volume undertaken at the time of signing the contract. From the third year onwards, premiums will be determined in accordance with the current list of conditions, but until then, exporters have the opportunity to realize significant savings. In addition, the new revenue sources available through the involvement of new customers in the first two years may even cover the applicable insurance premium.

MEHIB’s Facility C insurance is intended for current or future exporters registered in Hungary who export (or plan to export) partly or entirely to markets outside the EU and developed OECD countries with deferred payment, with a minimum term of 30 days and a maximum term of 23 months (18 months in the case of agricultural products).

The information contained in this article is for indicative purposes only, is not exhaustive, and does not constitute an offer. For details on Facility C insurance, please visit the EXIM website. For personalized offers, please contact us using the contact details provided on the website.