What is covered?
Non-payment by buyers due to:
- Protracted Default (i.e. Late Payments)
- Political Risks – (Optional) – Example – buyers unable to pay due to difficulty in converting their currency as a result of government intervention.
What is mainly not covered?
- Non-payments due to commercial disputes
Uniqueness of Credit Insurance
- Insurers have huge database of over 40 million companies which is regularly updated to track the financial health of the companies
- Powerful Debt Collection ability of credit insurers. Defaulting buyer is downgraded in the insurer’s database which can seriously affect the future business of that buyer.
- The policy can be assigned to a bank to act as collateral for funding.
Benefits of Credit Insurance
- Sell more to existing customers by offering them higher credit limits.
- Capture new clients and expand geographically by leveraging huge database.
- Banks find it very attractive if receivables are protected by Credit Insurance. Better interest rates and facility limits can be negotiated with banks as it reduces the risk of default.
How it works
Please click here to see our short animation video on Youtube which explains Credit Insurance in under 2 minutes.