Trade Credit Insurance

What is Trade Credit Insurance?

This insurance protects against non-payment risks. As an added benefit, you can also receive valuable credit information on buyers, access to financing on improved terms, help in debt collection and bringing discipline in the credit management process.

 

Who should use trade credit insurance?

If you answer yes to any of these questions, then you should consider obtaining trade credit insurance.

  • Do you sell regularly on credit terms?
  • Have you ever experienced bad-debt losses?
  • Have any of your customers ever become insolvent?
  • Do you have any unpaid commercial debts that you cannot collect?
  • Do you regularly sell to new customers?
  • Do you sell in international markets?
  • Do you need help in assessing the financial status of your customers?
  • Do you need to improve your company’s cash flow?
  • What can ATI insure with this product?

We frequently tailor solutions to protect our customers against payment default risks in a variety of situations to fit their needs. This list represents some of the most common transactions.

  • Business-to-Business transactions. This includes companies that are sole proprietors and partnerships
  • Commercial risks. This includes the legal insolvency of your debtor and protracted default (the risk of non-payment in situations where your debtor is not legally insolvent). We can cover banks, contractors, suppliers and other companies that may be supplying their goods or services to a single buyer or debtor
  • A portfolio. Our objective is to cover all the buyers or debtors of our customers on a ‘whole turnover’ basis. This includes the following sectors, where we can cover the entire list of your buyers or debtors: banks (where we can cover a portfolio of your SME clients) exporters, manufacturers or suppliers
  • Short term credit risk. This covers the risk of payment default for a period of up to one year with the possibility of renewal
  • Trade receivables. This covers invoices to your business partners for goods delivered or for services rendered. This does not cover loans. With this cover, a typical scenario can involve a customer who uses their receivables as collateral to obtain advance payment or bank financing
  • ATI offers two types of Trade Credit Insurance Products:
  1. For multiple buyers (WTO) insures your entire portfolio of buyers or debtors. Typically this is a one-year policy that covers business-to-business sales with credit terms up to 180 days
  2. For single buyers (SO) product covers only one buyer or debtor but is flexible in terms of the type of transactions it covers. This policy covers on average a credit period of one to two years
  3. For lenders, ATI offers protection against borrowers’ default on loans and other lending facilities and it also includes political risk cover for cross border transactions

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