If you are thinking about whether you need trade credit insurance or not, we recommend that you answer the following questions yourself first.
- Have you ever experienced a loss of receivables, especially with suppliers abroad?
- Do you regularly sell to new customers and markets?
- Do you currently use asset-based financing or factoring?
- Worried about Credit or country risk related to the growth of your overseas customer base?
If these questions sound familiar to you, you are not alone. In fact, managing credit and counterparty exposures and excuses has become one of the biggest risks faced by manufacturers, distributors and wholesalers in today’s global economy.
The reasons are clear. Although receivables are also the primary source of income, they are often the largest uninsured asset on a company’s balance sheet.
In addition, combined with the global economic crisis and domestic risks, it put accounts receivable at risk and restricted cash flows. Many companies are also entering new markets and expanding their supply chains across multiple regions—all increasing the need to protect themselves from the risks associated with their trade debt.
To address these and other issues, Finance and Insurance offers customized solutions for trade credit insurance, helping companies manage their receivables and counterparty exposures while supporting growth in new markets or with existing customers.
What is Trade Credit Insurance?
An insurance product that indemnifies a seller against losses caused by a buyer’s non-payment of a commercial claim resulting from both bankruptcy and delayed default/slow payment.
What are the Trade Credit Insurance Benefits?
If we collect the benefits of trade credit insurance for your company in a few items or titles, we can list them as follows.
- Open account guarantees the risk of non-payment of receivables arising from commercial activities. In export policies, the risk of bankruptcy and non-payment of debt and political risks are covered.
- The allocation of Credit Limits is based on analysis by risk managers with intelligence-based information and/or commercial experience.
- 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
- It affects the increase in sales with the new limits allocated from the insurance company. Increases turnover with increasing financial opportunities
- Allows you to focus on the right customers with the database of Credit Insurers
Makes it easier to work with customers with small turnover and higher profit margins on a term basis.
Protect Assets Receivable and Support Growth
Our solutions ensure that accounts receivable are protected against non-payment due to the risk of slow payment, bankruptcy or foreign transfer. Collateral is designed to prevent catastrophic losses, reduce the risk of important payments and transfer the risk of bad debt problems.
Companies can also increase their bank financing to improve their receivables relationships, improve their balance sheets and access more capital at lower rates.
In addition, Finance And Insurance can support sales in new or riskier markets, grow existing accounts, and strengthen customer relationships by assisting buyers with letter of credit requirements and other matters.
Use a Data-Driven Approach to Discern Risk
Finance & Insurance uses a detailed, data-driven approach to identify and measure risks in the trade credit insurance market. Our comprehensive financial analysis helps define the total cost of risk when using multiple loss reduction methods. We also conduct in-depth studies with credit, sales channel management, finance, Treasury and risk management to review existing practices.
Equally important is to consider the critical factors that affect the pricing and performance of the final solution. Other factors may include choosing between cancelable or non-cancellable programs, as well as considerations regarding current credit management processes and loss history.
Your Advantage with Finance & Insurance: Dedicated Experts Backed by Global Resources
For each client, Finance & Insurance provides a team of dedicated brokers, including a single point of contact empowered to provide ongoing policy and claims support. No third party or automated systems are used in any way. Instead, the Finance And Insurance team works closely with each client individually to understand their specific business needs.
For More Information About Trade Receivable Insurance
Finance And Insurance professionals can provide organizations with the experience, tools and deep industry expertise needed to provide optimal risk management solutions for trade credit insurance.endüstri uzmanlığını sağlayabilir.
In addition, you can get detailed information to review our State Supported Credit Insurance product by contacting us .
Get in touch with us
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