International factoring insurance
It is an insurance protection of a financial institution under factoring transactions against the risk of non-fulfilment by foreign counteragents of its contractual obligations
Insurance procedure
- The exporter and the financial institution providing factoring services (hereinafter referred to as the “Factor”) shall enter into a factoring agreement
- Export credit agency of Kazakhstan and the Factor shall enter into a factoring insurance contract
- The exporter shall deliver its products to the importer
- After the Exporter has provided documents on the shipment of its products, the Factor shall pay the Exporter the cost of the delivered products
- If the Importer fails to perform its obligations to the Factor, Export credit agency of Kazakhstan shall compensate the Factor for losses
