Export Trade Credit Insurance

by Andy Moylan founder The Export Hub

Export Trade Credit Insurance (TCI) protects your business from non-payment of an overseas commercial debt where a company offers open account credit terms to a customer. It provides insight and knowledge that ensures greater confidence when extending credit to new and existing markets as well as increasing sales to existing customers.

With the right TCI policy, your company can make an informed decision to export to other countries with the knowledge that 90% of their sales ledger (95% for political risk) is covered.  Before agreeing to extend open account terms to a customer overseas the policy holder would obtain a limit endorsement which depending upon the market could cover non-payment typically due to the insolvency of the end customer from both a commercial and political risk perspective.

3 Key benefits of Export Credit Insurance

  1. Prior to agreeing to extend open credit terms to an overseas buyer an insured can obtain a credit limit based upon in many cases locally sourced information that may not be available in the open market.
  2. In the event of non-payment due to the insolvency of the insured debtor or an insured political event many underwriters will assist in collection of the amount owed which could also include legal action.
  3. The policy can be assigned to your company financier in order to raise additional working capital for overseas sales.

Of course, like all insurances, there are many different types of policy and, there are many providers.

Before considering the tangible benefits of Export Trade Credit Insurance a specialist broker must undertake a country and debtor risk assessment to ensure that any cover matches the specific needs of your company and that it delivers for the premium being paid.

If you have any questions about Export Trade Credit Insurance or would like us to give a risk opinion on an overseas buyer, don’t hesitate to contact us.

You can email us at helpme@theexporthub.com or call us on +44 (0)1279 437 662 or fill out the contact form.

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