DID YOU KNOW? Credit Risk Insurance is now available
CREDIT RISK INSURANCE
This is an insurance provided by African Trade Insurance Agency to protect one against possible payment default by their debtors. The Insurance will cover both domestic and international debtors.
African Trade Insurance Agency (ATI) investigates each of the debtors and issue insurance coverage against potential payment default. The insurance will protect the policy holders against payment failure due to bankruptcy, deteriorating financial circumstances or, if a specified buyer, payments extending beyond the credit period.
The ATI also provide insurance to cover pre-shipment if goods are being produced with a non-standard configuration for a specified client.
Advantages of Credit insurance are: -
- Protection – The Credit insurance gives assurance of payment provided the exporter performs their part of the export contract i.e. to deliver the goods and services on time in agreement with the buyers specifications
- Growth – Credit Insurance gives a business the confidence to explore business opportunities one normally avoid for fear of non-payment
- Better Credit terms – Credit terms can be given to buyers if this is necessary to secure sales. One can improve the competitiveness of products by offering better credit terms to buyers under protection of a policy
- Security for Bank Financing – Helps the exporter to discount post shipment debts that are due by the buyer. The exporter can assign the right under the export credit insurance policy to receive a claim payment for future sales to the bank and which will give the bank better security when advancing money.
EXPORT CREDIT INSURANCE
This is a risk management tool that protects exporters against one or more of their international customers’ non-payment due to insolvency, protracted default or repudiation of contract.
It also protects against financial loss due to non-payment, delayed payment, unilateral cancellation of a contract by endorsement and political related risks.
For more information please do not hesitate to contact us. |
