Trade Credit Insurance
This insurance is designed for entrepreneurs who conduct sales on deferred payment terms—commonly known as trade credit. The subject of the insurance is undisputed receivables arising from the sale of goods or services, provided that the delivery or shipment of goods, or the performance of the service, occurred during the insurance period, and the related invoices were issued within the maximum credit period.
Trade credit insurance enables a company to offer extended payment terms, thereby enhancing its competitiveness. The insured also benefits from the insurer’s support in credit risk assessment, debt collection, and enforcement of receivables. Trade credit insurance is a crucial element of risk management for businesses and serves as a tool for maintaining financial discipline. It helps protect against losses resulting from the insolvency of customers purchasing goods or services.
