Services
CREDIT INSURANCE
Credit Insurance, trade credit insurance, business credit insurance, or export credit insurance is an insurance policy used by businesses as a risk management tool. This type of policy protects a business against its commercial customers’ inability to pay, whether because of bankruptcy, insolvency, or political upheaval in countries where the trade partner operates.
Covered Risks:
- Political – political violence, government intervention, cancellation of export or import license, currency inconvertibility
- Commercial – buyer’s insolvency/bankruptcy or protracted default
- Special – confiscation, expropriation & nationalization, contract frustration, unfair calling of bonds/stand-by LCs, pre-export risks
BENEFITS
- Enhanced competitiveness as it enables businesses to offer open account terms
- Minimized exposure to risk provides confidence to explore and expand to new markets
- Improved access to finance as lenders favor companies with secure cash flow
- Complements businesses’ credit department
- Insurers’ vast sources of information
- Insurers pursue collections once a claim is filed