Foreign credit insurance association (fcia), Finance Basics

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Foreign Credit Insurance Association (FCIA)

An agent of the Export/Import Bank, FCIA gives exporters with insurance coverage beside both commercial and political risk. The main motive of the FCIA are as follows: (1) Protecting exporters beside failure of foreign buyers to pay their credit obligations for commercial or political reasons; (2) encouraging exporters to propose foreign buyers competitive terms of payment; (3) supporting an exporter's prudent penetration of higher-risk foreign markets; and (4) giving exporters and their banks larger financial flexibility in handling over- seas accounts receivable.


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