As a result of Globalization, there is a growth in trading opportunities and companies
are faced with increasingly complex needs in terms of trade receivables management.
Current economic conditions have increased pressure on companies trading on credit terms. With
continuing concerns over the impact of unexpected levels of severe debt, companies need to fully
understand their credit risk profile and ensure they have sufficient balance sheet and cash flow
Strong and effective credit risk management is essential to protect and promote business growth. Credit
Insurance is a tool which helps the companies to expand business with peace of mind.
Credit Insurance protects the companies against customer defaults. It covers
the sales of the companies to its buyers on credit against the risk of loss due to the
insolvency of their customers.
Credit Insurance plays a vital role in the trade life -cycle of any company
by protecting profit, cash flows, sales growth, the balance sheet and a company’s customer base.
It can be of great help in growth of sales by allowing the secure development of new buyers, new
markets and the credit extended to a buyer.
Whatever be the size of your company, Global Trade Credit provides
innovative credit risk protection solutions to protect your business from unmanageable debt
whilst maximizing profitability. We work on your behalf to make sure the most competitive terms
are negotiated and secured in respect of cost, cover and service.
For companies with branches or subsidiaries in different regional locations
or countries, there is an added risk of inconsistent credit management procedures leading to
lack of awareness of your overall exposure to customer failures or politically unstable markets.
Credit insurance covers the risk of non-payment of trade debt. Protection
for political and pre-credit risk can also be added, giving you the confidence to trade on
credit terms in uncertain economic times.
Scope of cover
The policy covers loss due to any or all of the following risks:
Non payment by the buyer – protracted default
Insolvency of the buyer
Military or civil war, revolution, riot or insurrection
General moratorium on payment by the government of buyer’s country
Cancellation of import license
Government decision preventing performance
Political events, economic difficulties, legislative or administrative measures
Non-payment by government buyer
Protects your profit & loss account and balance sheet against non-payment risk.
Underpins your credit management function and supports corporate governance best
Gives security in new markets allowing exporters to grow their business.
Provides invaluable customer insight based on updated economic analysis from credit
Non-payment arising due to trade disputes
Sales to a private individual who intends to use the goods or service for
Sales to an associate company (political and AOG risk can be covered)
Sales contracts where payment is received in advance
Sales under irrevocable and confirmed Letter of Credit
Loss due to foreign currency fluctuations
A war between two or more of the following countries: France, China, Russia, the United
Kingdom and the United States of America
A war between the Insured’s country and the country of the buyer