Trade Credit & Political Risks
Trade Credit Insurance protects accounts receivable i.e. cover against non-payment by your debtors. Non-Payment risk falls into two categories – Commercial Risks and Political Risks:
Account Receivables are one of the largest assets in your balance sheet and bad debt could have a significant effect on your company’s financial health. Trade Credit Insurance is a cost-effective way to alleviate this risk, especially in the uncertain and volatile business climate we live in.
The need for coverage is more than ever today when economies around the globe are struggling and businesses failing, including large and established ones.
Even with the most rigorous and disciplined credit management practices, businesses cannot prevent bad debts. Self-insurance or a bad debt reserve does not replace monies lost, whereas trade credit insurance puts cash back in your hands. We are committed to provide the most effective trade credit solutions for all our clients.
Contact us for structuring the right policy for You in a cost-effective manner backed by our well-established Insurer relationships.
Commercial Risks
Why Consider Trade Credit Insurance
Political Risks
- Insolvency
- Protracted Default
- Currency inconvertibility and non-transfer risks
- Contract frustration
- Confiscation, expropriation, nationalization and deprivation (CEND)
- Political violence, forced abandonment, embargo and sanctions