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Before shipping a single product overseas, one decision can make or break your export deal: How well do you know your buyer’s ability to pay?

For UAE exporters, especially SMEs expanding into new markets, assessing buyer creditworthiness is essential to protect cash flow and avoid potential defaults.

Why It Matters

Exporting often involves open account terms—meaning you ship before receiving payment. If the buyer defaults or delays, your entire revenue cycle is impacted.

Evaluating creditworthiness helps you:

• Reduce the risk of non-payment
• Negotiate safer payment terms
• Secure financing based on reliable receivables
• Build long-term, trustworthy relationships

Key Indicators to Assess

1. Credit History & Payment Behaviour Look for a track record of timely payments, defaults, or legal disputes.
2. Financial Health Check financial statements, profitability, and liquidity ratios where available.
3. Country & Industry Risk Consider the political, economic, and sector-related risks that may impact the buyer’s performance.
4. References & Reputation Ask for trade references or feedback from other exporters who’ve dealt with them.
5. Credit Limits & Exposure Determine how much you’re comfortable selling on credit, based on your risk appetite.

How ECI Helps

Etihad Credit Insurance provides UAE exporters with tools to assess and manage buyer risk:

• Access to a global database of 400M+ companies with real-time credit scores
• Buyer risk assessments tailored to sector and country risk
• Trade credit insurance covering up to 90% of invoice value in case of default
• Pre-shipment evaluations for smarter decision-making

Conclusion

Due diligence isn't a luxury—it's a necessity. Understanding buyer creditworthiness is the first step toward safer, smarter exports.

👉 Learn how ECI helps UAE exporters assess risk and grow with confidence