State Supported Credit Insurance

What is it State Supported Receivables Insurance?

From the concept of government-supported receivables insurance provided for SMEs, the risk assessment conditions determined by the Extraordinary Risk Management Center (ORYM), which generally has at least two years of history and whose domestic annual net sales revenue or financial balance sheet does not exceed 175 Million TL. SMEs that provide As Finance & Insurance, we guarantee the receivables of our SMEs and make them feel financially secure.

What are the Guarantees and Advantages?

• With the system, which became operational in February 2019 with the support of the State, the receivables of our SMEs with a 2019 year-end turnover below 175,000,000 TRL are guaranteed.
• It guarantees the risk of non-payment of receivables arising from commercial activities within the scope of the limit that can be established at a maximum of 750,000 TRL per customer.
• Additional Credit Limits made at the policy proposal stage and during the policy period are analyzed and allocated by the Türk Reinsurance risk team.
• In case of compensation, the collection/follow-up processing costs of the unpaid receivable are covered by the contract with the insurance company.
• It maintains the receivable quality in the balance sheet assets and affects the profit/loss account.
• The cost of credit management becomes certain before the start of the new accounting year, it can prevent large unforeseen losses up to 30 times the premium paid
• The increase in sales with the new limits established will affect the acquisition of new customers. Ensures healthy growth of turnover with increasing financial opportunities
• It enables you to focus on the right customers with the Türk Reinsurance database without creating any additional costs.
• Makes it easier to work with customers with small turnover and higher profit margins on a term basis.

What Does State Support in Credit Insurance Mean?

The part of the risks undertaken within the scope of the insurance content, which may or may not be procured from the local and global insurance market, the capital market and their associated contractors, is undertaken by the State with the necessary terms and conditions.

What is the Risk Assessment Under the State Supported Receivables Insurance?

The criteria to be used in the risk assessment of the SMEs to be covered are determined by the Center. Within the scope of the evaluation, buyers who make up at least 50% of the turnover of the insurance requesting company from forward sales and are ranked from largest to smallest on the basis of turnover sizes are taken into consideration. As a result of the risk assessment, each of these buyers is given a score between 1 and 6, and the risk assessment is created according to these scores.

Bonus calculation is calculated according to the table above. It is obtained by multiplying the insurable turnover with the premium rate corresponding to the maturity range chosen by the customer. In any case, the calculated premium cannot be less than 3,000-TL. In case the calculated premium is below this amount, the premium amount is accepted as 3.000-TL.

Information

Subject: Information Note on DDAS Communiqué Amendment

To the Communiqué Amending the State Supported Commercial Receivables Insurance Tariff and Instruction Communiqué for SMEs published in the Official Gazette dated 14.10.2021 and numbered 31628 (https://www.resmigazete.gov.tr/eskiler/2021/10/ 20211014-3.htm) the following changes have been made.

• The 20% increase margin granted to the Center in determining the domestic forward sales turnover of the SME has been increased to 40%. Thus, if the Center deems it appropriate, businesses that qualify as SMEs and have a domestic turnover of up to 175 million TL will be able to benefit from the system.
• At the same time, the turnover level of SMEs that continue to be SMEs, whose turnover exceeds this level, and which are currently using the DDAS product, has increased to 300 million TL.
• The minimum premium amount was increased from 2.000 TL to 3.000 TL.
• EFT/Money Transfer method has been added to the existing installment methods. Thus, it was facilitated in the premium payment of SMEs.