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Not all export transactions have the same payment timelines.

Some are completed within a few months, while others involve longer repayment periods.

This is where the distinction between short-term and medium-term trade credit insurance becomes important.

What is short-term trade credit insurance?

Short-term coverage generally applies to transactions with payment terms of up to two years.

It is commonly used for recurring trade transactions and ongoing export relationships.

What is medium-term trade credit insurance?

Medium-term coverage applies to transactions with repayment periods extending beyond two years, often up to five years, such as capital goods sales and project-related exports.

It is commonly associated with larger transactions, capital goods, or project-related exports.

Why does the difference matter?

Different repayment periods create different risk profiles.

Understanding the distinction helps exporters choose solutions that match their trading activities.

A simple example

An exporter selling consumer goods on 90-day payment terms may require short-term coverage.

An exporter supplying industrial equipment with repayment over several years may require medium-term coverage.

How Etihad Credit Insurance (ECI) helps

Etihad Credit Insurance (ECI) supports exporters by:

• Offering solutions aligned with different transaction types
• Supporting both short and longer-term export opportunities
• Helping businesses manage risk across various trading models

👉 Explore ECI’s trade credit insurance solutions.