Credit Insurance

Credit Insurance - is a financial risk management product that protects businesses against losses arising from non-payment by their customers (buyers) for goods or services sold on credit terms.

It’s especially valuable for companies involved in domestic or international trade, helping protect their cash flow and balance sheet from bad debts.

How Trade Credit Insurance Works:

1. Business supplies goods/services to customers on credit (e.g., 30, 60, 90 days).
2. If the customer fails to pay due to insolvency, protracted default, or political risks (for exports)—the insurer compensates the business for the unpaid invoice, typically up to 80–95% of the loss.
3. The insurer often monitors buyers’ creditworthiness and can provide early warnings.