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Global Credit Insurance
Comprehensive Credit Insurance for Global Markets
For export businesses offering credit internationally, an export credit insurance policy can provide protection for foreign receivables, including assets and due payments, giving you peace of mind while doing business with foreign companies.
What is Export + Domestic Credit Insurance and Why is it important?
In today’s competitive global landscape, cash in advance and letters of credit are not very popular payment terms. Many international buyers are now opting for open-account transactions and expect you to provide the same. Meanwhile, customers in developing nations may still need favourable credit terms for them to place large orders.
If you’re exporting goods to clients in other nations, offering competitive credit terms may be crucial to attracting more customers and international business. However, there is always the risk of non-payment due to political or other issues such as insolvency, bankruptcy, cash flow challenges, currency depreciation, or other business disruptions that could prevent you from getting paid. This credit insurance policy safeguards your receivables, ensuring you’re protected against risks. Additionally, it also covers risks associated with domestic markets.
Coverage Details
This comprehensive credit insurance protects both your foreign and domestic receivables, including due payments and assets, from various commercial and political risks that may leave you unpaid.
Commercial Risks: Protection against buyer insolvency or bankruptcy, business closure, and protracted defaults (delay payment) arising from unstable markets, natural disasters, or economic instability in the buyer’s country.
Political Risks: Non-payment or asset seizure due to political issues including war, civil unrest, protests, currency regulations, confiscation, and changes in foreign trade laws.
We offer flexible credit insurance policies for both domestic and export businesses. You can insure receivables from multiple buyers under one multi-buyer policy or opt for an exclusive single-buyer policy depending on your needs and preferences. These policies are available for all types of goods. Any exporter or domestic business can be eligible for this policy as long as their buyers are considered creditworthy.
Cost of Coverage
Premium rates will depend on factors such as the credit terms you offer to buyers, the buyers’ locations and diversity, associated risks, and your business experience. Typically, the insurance costs less than one per cent of the total sales volume, which is much less than the fees associated with letters of credit.
Premiums may be calculated separately for different orders or goods based on shipment volume, outstanding dues, and offered credit limits. You can choose to pay premiums monthly, quarterly, or annually.
Whether you pay the insurance cost or pass it on to customers, the cost is negligible compared to the risks covered.
Why Partner with AtoZWoodCompany
AtoZWoodCompany is an expert provider of export and domestic credit insurance policies backed by the world governments and leading commercial insurers. Here are other benefits you get when you choose us as your insurance provider:
Comprehensive Policy: Choose from a variety of flexible policy options based on your needs. All policies are provided by trusted insurers and agencies worldwide. AtoZWoodCompany specializes in export credit insurance.
Competitive Rates: Strong partnerships and extensive market experience allow AtoZWoodCompany to offer the best policies at low premium rates without unexpected fees or charges.
Tailored Support: As your business and needs grow, our flexible policies can be changed accordingly to continue meeting your requirements.
AtoZWoodCompany offers regular credit reports, foreign credit evaluation training and tools, policy compliance service, and continued support for your teams.
Comprehensive Credit Insurance to Help Grow Your Business
- Boost Export Profits
- Expand Market Reach
- Build Long-term Relationships
- Improved Financing Options
- Enhance Financial Stability
Reduce risks while offering better credit terms to your foreign buyers, enabling them to place larger orders. Attract more customers to boost profits.
Enter more markets around the globe and attract more creditworthy customers. With this comprehensive credit insurance, you can confidently trade with businesses in emerging countries without worrying about risks.
Provide competitive credit terms to your international distributors and dealers, giving them more reasons to import and stock more of your products.
When your receivables are insured against risks, you can borrow more by using insured items as collateral.
Export credit insurance reduces risks to your foreign assets and receivables, ensuring your balance sheets are sturdier than ever.
By choosing AtoZWoodCompany as your domestic & export credit insurance provider, you can confidently grow your business with complete peace of mind. Contact our team today to get started.
