Growing cross-border trade inevitably increases the risks of financial defaults, delayed payments, doubtful recoveries or bad debts. Exporters are often obliged to trade on trust and or on certain payment terms and conditions. This can become difficult as their customers may not be able to adhere to those terms due to their own financial problems or circumstances beyond their control. Evaluating credit history of a potential customer or an existing customer can be tricky as credit history can change drastically unless it is kept on watch while transacting business.
Credit Insurance provides protection against delayed payments or certain unrecoverable credit. Credit insurance policy operates live, unlike other policies which allow the policyholder to evaluate credit history of their customer or country of trade to determine the credit worthiness.