Trade Credit
Business protection from the impact of payment default by key customers
AIG provides the protection your company needs to trade internationally and domestically by insuring your accounts receivables against the risk of protracted default due to financial conditions according to the policy conditions.
Why Trade Credit Insurance?
By protecting against the risk of customer default, trade credit insurance is a key instrument in your company’s credit risk management. With trade credit insurance, your company is assured of the support on cash flow and liquidity at any time.
Trade credit insurance enhances your company’s credit standing and facilitates more attractive financing terms. With reduced credit risk, your company can expand existing markets and establish new ones with greater confidence.
Who is it for?
- Any company that sells goods and services on credit terms (i.e., extends credit to customers rather than requiring payment up front) and is exposed to the risk of non-payment.
- Large, medium and small commercial enterprises.
- Subsidiaries or divisions of Multinational companies may buy coverage for different regions or product lines locally, or under a coordinated global program.
What is covered?
Apart from protecting the Insured's financial and the accounts receivable, our coverage can potentially enable the Insured to expand sales in new markets and offer more competitive terms of sale.