The Import Factor is providing credit risk cover against the insolvency of the buyers in the pre-shipment period. The POM liability of the Import Factor is the maximum of the Pre-Shipment Credit Cover (which is always no more than the overall Credit Limit).   It protects, as part of a factoring contract, exporters of goods against the buyer's failure to fulfill its obligation due to financial inability to pay during the period from purchase order approval till shipment. POM does not include the cancellation risk by the buyer. Further details to this product you may find in the POM white paper (only available to FCI members)