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Modern supply chains depend on businesses delivering goods and services while payments often follow at a later date.

When one business in the chain experiences payment difficulties, the impact can extend beyond a single transaction.

Trade Credit Insurance can help businesses protect their receivables and manage payment risk across their supply chain relationships.

Where does payment risk arise in a supply chain?

Businesses throughout a supply chain may sell to customers on credit terms.

This creates a period between delivery and payment during which the seller remains exposed to the buyer.

Payment risk can become particularly important when businesses:

• Depend heavily on key customers
• Supply high-value orders
• Operate with extended payment terms
• Have significant amounts tied up in receivables

A major unpaid invoice can affect cash flow and, in turn, a company's ability to meet its own business obligations.

How does Trade Credit Insurance support supply chain resilience?

Trade Credit Insurance helps protect eligible receivables against non-payment, reducing the potential financial impact when a covered buyer fails to pay.

It can help businesses:

• Manage payment risk across customer relationships
• Protect cash flow from eligible non-payment events
• Monitor buyer exposure
• Make more informed decisions when extending credit

By managing receivables more effectively, businesses can strengthen their ability to respond to disruptions.

Why does this matter?

Supply chain resilience is not only about the movement of goods.

Financial resilience also matters.

When businesses depend on payments from customers to fund operations, purchase materials, and fulfil future orders, managing receivables becomes an important part of maintaining a resilient supply chain.

A practical example

A UAE manufacturer supplies products to several international distributors on credit terms.

One major distributor experiences financial difficulties and delays payment on a significant order.

Because the manufacturer depends on customer payments to purchase materials for future production, the delay could create pressure elsewhere in its operations.

Managing this payment exposure helps the business reduce the potential impact of disruption across its wider supply chain.

How Etihad Credit Insurance (ECI) helps

Etihad Credit Insurance (ECI) supports businesses by:

• Protecting eligible receivables against non-payment risk
• Helping businesses monitor buyer exposure
• Supporting more effective payment risk management
• Contributing to stronger and more resilient trading relationships

👉 Explore ECI’s trade credit insurance solutions.