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Working capital is essential for businesses to manage daily operations, purchase materials, and fulfil customer orders.

When exporters sell on credit terms, payments may not be received until weeks or months after goods or services are delivered.

Trade Credit Insurance can help businesses manage the risk of non-payment and reduce the potential impact of unpaid receivables on working capital stability.

What is working capital stability?

Working capital refers to the resources a business has available to meet its short-term financial obligations.

For exporters, maintaining stable working capital often depends on receiving payments from customers on time.

When a buyer delays or fails to make a payment, the business may experience pressure on its available funds, particularly when significant amounts are tied up in outstanding receivables.

How can Trade Credit Insurance help?

Trade Credit Insurance can support working capital stability by:

• Protecting eligible receivables against non-payment risk
• Reducing the potential financial impact of covered payment defaults
• Helping businesses manage exposure across their customer portfolio
• Supporting more informed decisions when extending credit

While Trade Credit Insurance does not prevent payment delays, it can provide financial protection against covered losses, helping businesses manage the potential consequences of non-payment.

Why does this matter?

Maintaining stable working capital allows exporters to continue operating while waiting for customers to settle their invoices.

Managing payment risk can help businesses:

• Reduce the potential impact of unpaid receivables
• Maintain greater financial stability
• Support ongoing business operations
• Plan future sales and purchases with greater confidence

Protecting receivables is an important part of maintaining financial stability as a business grows.

A practical example

A UAE manufacturer supplies products to several overseas customers on 60-day payment terms.

The company relies on these payments to purchase materials and fulfil upcoming orders.

When one major buyer experiences financial difficulties and fails to pay, the manufacturer may face pressure on its working capital.

By protecting eligible receivables through Trade Credit Insurance, the business can reduce the potential financial impact of the covered non-payment event and better manage its overall exposure.

How Etihad Credit Insurance (ECI) helps

Etihad Credit Insurance (ECI) supports UAE exporters by:

• Protecting eligible receivables against non-payment risk
• Helping businesses manage overseas buyer exposure
• Supporting more effective receivables risk management
• Contributing to greater working capital stability

👉 Explore ECI’s trade credit insurance solutions.