Trade Credit Insurance
It covers unpaid account receivables, in which the insurance company will offer 90% coverage of total amount of the unpaid account receivables
provided that all the customers (buyers)’ named under insurance must be declared so that the insurance company can analyze the financial security of those customers. This insurance will benefit the company that enters into the business with the new customers. The insurance company will analyze the new customer’s credibility from the global company database. Moreover, during the year, if any customer has financial problems, the insurance company will send a warning about such customer for you to prepare a solution (e.g. reduce the credit term, etc.) This type of insurance can also be used as a marketing tool, e.g. increasing the customer’s credit term or upgrading L/C, DP or DA to credit term transaction for customers. Moreover, you will be more confident in doing business for having less concern over account receivables and having more time to think about how to increase sale volume.