International factoring insurance

Insurance of international factoring - insurance protection of a financial institution under factoring transactions against the risk of non-fulfillment by foreign counteragents of its contractual obligations.

Insurance procedure:

  1. The exporter and the financial institution providing factoring services (hereinafter referred to as the “Factor”) shall enter into a factoring agreement;
  2. KazakhExport and the Factor shall enter into a factoring insurance contract;
  3. The exporter shall deliver its products to the importer;
  4. After the Exporter has provided documents on the shipment of its products, the Factor shall pay the Exporter the cost of the delivered products;
  5. If the Importer fails to perform its obligations to the Factor, KazakhExport shall compensate the Factor for losses