Trade Credit

Trade Credit

Buyers and sellers have long relied on credit to facilitate trade but never more so than in today’s global marketplace where supply and demand are founded on increasingly complex credit arrangements. However, where credit is involved, there are also counterparty risks if a buyer defaults on payment, or inability to meet its commitments due to insolvency or for other reasons? Non-payment can have a devastating effect on the balance sheet of the entity extending credit which is why trade credit insurance is essential for business security and confidence.

The key benefits for clients include: security of non-cancellable credit and country limits; balance sheet and cash-flow protection; improved terms for bank financing facilities; an effective alternative to letters of credit or other types of collateral; reduced

need for bad debt reserves; increased potential for sales growth to new and existing customers. The risk transfer arrangements we provide, satisfy capital adequacy requirements.