Trade Credit Insurance FAQs - African Trade Insurance

Trade Credit Insurance FAQs

What is Trade Credit Insurance?
Trade credit insurance is a risk mitigation tool that protects against payment default risks. The product replaces expensive collateral such as Letters of Credit that are often required by banks to secure a loan or a line of credit. ATI’s solution allows companies the freedom to offer better payment terms to their clients, to increase their cash flow and to be internationally competitive by operating on credit terms.

How do I know I need Trade Credit Insurance?
If you are new to the world of trade credit insurance, you may wish to consider ATI’s risk
solutions if you answer yes to one of the following questions:

  • Have you ever experienced any losses due to bad debt?
  • Do you have any outstanding commercial debts that you cannot collect?
  • Do you need help to assess the financial status of your customers?
  • Do you regularly experience problems with cash flow?
  • Have any of your customers ever gone into bankruptcy?
  • Do you regularly sell or plan to sell to customers in foreign markets?
  • Do you plan to sell to new customers?

What are the benefits of Trade Credit Insurance?
ATI has built a track record of success for clients doing business around the world who have come to rely on our global network of partners. Here are 10 ways on how ATI’s Trade Credit Insurance solutions can help your business:

  • Expand into new markets
  • Make sound business decisions
  • Protect your company against disastrous losses
  • Collect debts more efficiently
  • Obtain a credit rating and protect your existing rating
  • Decrease expenses from your credit management administration
  • Avoid the cost and hassle of Letters of Credit (L/Cs)
  • Get a bank advance on your receivables
  • Increase your creditworthiness with your bank
  • For insurance companies, you can gain access to the reinsurance market

What does ATI cover?
ATI can insure your entire portfolio of buyers or debtors and we can also cover single buyers.

For lenders, ATI offers protection against borrowers’ default on loans and other lending facilities, and it also includes political risk cover for cross-border transactions.

ATI covers these specific risks:

  • A corporate buyer/borrower who refuses to pay or is unable to pay due to insolvency
  • A corporate buyer/borrower who fails to pay due to deteriorating financial circumstances
  • A corporate buyer/borrower who extends your payment beyond the agreed credit period (protracted default)
  • Public buyers (public institutions) can also be included

To learn more contact us at underwriting@ati-aca.org

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