CREDIT INSURANCE
What is credit
insurance?
Credit insurance is an invaluable aid to successful national and
international business-to-business trade. It covers the risk of financial
loss that can occur when trade credit is offered by a business to its
corporate customers – thus providing a set period of credit after provision
of products or services before payment is due. In these circumstances, there
is always a risk of non-payment, either because the customer may be unable
or unwilling to pay, or because an unforeseen event prevents successful
completion of the sales: for instance, a shortage of the currency of the
contract in the customer’s country, or government intervention, or a natural
disaster.
The
essential value of credit insurance is that it provides not only peace of
mind to the client, who can be assured that their trade is protected, but
also valuable market intelligence on the financial viability of the client’s
customers (buyers), and, in the case of buyers in foreign countries, on any
trading risks peculiar to those countries . As well as providing an
insurance policy that match the client’s patterns of business, we will
establish the level of cover that can reasonably be afforded to the client
for trade with each individual buyer, by analysing the buyer’s financial
status, profitability, liquidity, size, sector, payment behaviour and
location. To augment the information that already holds – currently on over
100 million companies worldwide – we also take into account the valuable
experience that our client may already have through previous trade with the
buyer.
There’s much more to credit insurance, and our country-focused websites show
the range of services available to you – and who to contact for more
information and advice.
In designing a
policy that meets the client’s cover requirements, the Çađatay Brokerage
policy underwriter will determine the detail of the policy based upon a fair
assessment of the trading risks involved. This will be reflected in, amongst
other things, the terms and conditions of the policy, premium payable,
insured percentage (i.e share of risk between us and the client), and the
maximum credit terms that can be offered by the client.
Çađatay
Brokerage’ core business is credit insurance. Since one size does not always
fit all we offer credit insurance products that meet the specific needs of
SME’s, large domestically operating companies and multinationals.
For the SME
target market we have developed an entry-level product,. It has simple terms
and conditions and minimum administrative burdens for the customers to
fulfil.
For large
domestically operating companies we offer which a modular credit insurance
policy that provides protection against non-payment and allows our customers
to select specific terms and conditions of cover. That can easily be
combined with other product offerings, such as debt collection services, to
create comprehensive solutions.
Çađatay
Brokerage offers a sophisticated tailored credit management solution for
multinationals in the form of its Global policy. Customers have access to
‘best-in-class’ feature. Customers can choose between a policy with standard
terms and conditions within which the parent company and all subsidiaries
operate, and stand-alone policies that accommodate varying performance
levels and country conditions.