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What happens, if buyer does not pay export bill?
If overseas buyer not paid your sale value of goods you exported, how can you claim such amount? Ok, you would have received amount from your bank this amount as pre-shipment or post shipment finance against such export consignment. However, if bank does not receives such amount, obviously bank debits back to your account.
Here, you have received your loan amount against your export bills from bank. 
However, bank gets amount only as per your contract with buyer – say 60 days from shipment date.
What happens, if your buyer did not pay amount on time. Remember, you are discounting bills against the amount you need to receive from buyer after 60 days. So bank charges you a nominal interest rate for 60 days or till receiving money from your overseas buyer. If amount not paid by your buyer, your bank debits back the amount which you had received from bank. Bank also takes insurance with Export Credit Guarantee Corporation against you for an amount of the said export discounting bills. So if bank does not receive amount from overseas buyer, bank claims insurance from ECGC.
Bank covers Insurance from ECGC against whom - against default of payment by overseas Buyer or against default of payment by you?
Since bank pays amount to you as an exporter, bank covers insurance on default of payment against you and not against overseas buyer.
If you have not been approved by ECGC and if no ECGC insurance cover is available, the discounted amount with the applicable rate of interest will be debited to exporter’s account on default of payment by overseas buyer.
I hope, I could explain about default of payment by overseas buyer in exports and imports trade with its connection to finance already availed by bank against such consignment.
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