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Payment terms play a key role in international trade. They define when and how exporters get paid.

Understanding how these terms relate to insurance coverage is important.

What are payment terms and tenor?

Payment terms refer to the agreed timeframe for payment, such as 30, 60, or 90 days.

Tenor refers to the length of that credit period.

How does this affect coverage?

Trade Credit Insurance typically applies to transactions within agreed payment terms.

The longer the tenor, the longer the exposure to payment risk.

Why does this matter?

• Payment terms directly impact:
• Cash flow timing 
• Risk exposure duration 
• Business planning 
• Choosing appropriate terms helps balance competitiveness and risk.

A simple example

An exporter offers 30-day terms to one buyer and 120-day terms to another.

The second transaction carries a longer exposure period, increasing the risk of delayed or non-payment.

How Etihad Credit Insurance (ECI) helps

Etihad Credit Insurance (ECI) supports exporters by:

• Aligning coverage with agreed payment terms
• Helping manage exposure across different tenors
• Supporting informed trade decisions

Businesses managing receivables across multiple buyers can explore Whole Turnover Insurance, while exporters handling specific transactions or buyer exposure may benefit from Single Risk Insurance.

Companies looking to reduce exposure to delayed or missed payments can also consider Non-Payment Insurance.

To better understand how coverage applies during the period between shipment and payment, read our guide on How Trade Credit Insurance Works.

👉 Explore ECI’s trade credit insurance solutions.