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Choosing the Right Trade Credit Insurance
A Step-by-Step Guide to Choosing the Right Trade Credit Insurance
Choosing the right trade credit insurance isn’t just about protecting your business—it’s about enabling growth. With the right policy, UAE exporters can explore new markets, extend payment terms with confidence, and manage cash flow more effectively.
At Etihad Credit Insurance (ECI), we help businesses make informed decisions by offering tailored solutions to suit their needs. Here’s a simple guide to help you choose the right coverage.
Step 1: Understand Your Risk Exposure
Start by evaluating your current and potential risks. Are your buyers located in high-risk markets? Do you often work on open credit terms? Do you rely heavily on a small number of clients? Understanding where you’re most vulnerable is the foundation for selecting the right cover.
Step 2: Know Your Coverage Options
ECI offers multiple credit insurance solutions, including:
- Whole Turnover Insurance: Covers your entire portfolio of international buyers.
- Single Risk Insurance: Ideal for large transactions with specific buyers or projects.
- Factoring, Invoice Discounting & Supply Chain Finance Insurance: For banks and factors working with receivables.
- Buyer Credit & Political Risk Insurance: For longer-term infrastructure or capital goods projects.
Choose a product based on your trade model, payment terms, and client mix.
Step 3: Evaluate Insurer Strength & Market Reach
An insurer’s global database and ability to assess buyers is key. With access to data on over 400 million buyers worldwide, ECI offers powerful credit insights that help you trade smarter.
Step 4: Review Policy Flexibility
Look for a solution that can grow with your business. At ECI, we offer:
- Adjustable credit limits
- Flexible coverage options (single buyer vs. whole turnover)
- Support for short-, medium-, and long-term transactions
Step 5: Compare Cost vs. Value
The cheapest option may not always offer the protection you need. Consider what’s included:
- Risk assessment quality
- Claims handling experience
- Market knowledge
- Capital relief advantages (especially for banks)
ECI is backed by a Fitch AA- rating, offering financial security you can rely on.
Conclusion
Trade credit insurance is not one-size-fits-all. With the right policy in place, you can expand with greater certainty and protect your business from unpredictable risks. Let ECI help you choose a solution that fits your goals, risk profile, and growth ambitions.