Every company which issues invoices with a maturity and works with its customers on an open account basis, can use credit insurance
Insurable Turnover is calculated by subtracting the sales below from the total sales:
Sales against bank letter of guarantees
Sales to public companies
Sales to individuals
Sales to group/affiliated companies
Direct debit system sales
For all practical and cost effective reasons, a minimum of 10 mio TRL of insurable turnover is desirable.
No, Trade Credit Insurance covers all the sales on credit terms of the company. Some segregations may be done occasionally in certain special cases.
Insurance covers % 90 of the limits that are allocated.
The prior years’ claims, the sector that the company operates, the credibility of your customers, general economic situation, risk appetite of the insurance company, the risk management of your customers directly impact the costs.
Cheques are not viewed as collateral, they are only a payment instrument and therefore they create risk. Sales with cheques are subject to credit insurance.
If the claim occurs within an allocated credit limit, legal expenses are paid by the insurance companies.
Trade Credit insurance+good policy management=secure trade
This can be provided by an expert team.
Although not very common in Turkey, a policy can be issued for one single buyer. But, its cost is generally high.
The policies are issued for one year.
If the chapter 11 bankruptcy is based on a legal document taken from courts, it is under cover and the insurance company compensates in 30 days.Bankrupt’s certificate is considered as a default and will be reimbursed within 150 days of your application.
Under bankruptcy and Chapter 11 cases, it is 30 days. Under default cases, waiting period is 150 days.
Only if there is a claim, insurance company will demand the invoice to be declared.
Yes, if your bank guarantee is not enough, you can cover remaining portion of your risks with the credit limits taken from insurance companies.
Both banks and factoring companies prefer insured receivables as collateral.