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Waiting Periods Explained
In trade credit insurance, claims are not paid immediately after a missed payment.
There is a defined period that must pass before a claim becomes eligible.
What is a waiting period?
A waiting period is the time between a missed payment and when a claim can be submitted or processed.
It allows time to confirm whether the non-payment is temporary or more serious.
Why does this exist?
Not all delays result in permanent loss. Some payments are late but eventually received.
The waiting period helps:
- Distinguish between delays and defaults
- Avoid premature claims
- Ensure proper assessment of the situation
Why does this matter?
Understanding waiting periods helps exporters:
- Plan cash flow expectations
- Respond appropriately to delays
- Avoid confusion during claims
A simple example
A buyer misses a payment due at 90 days. If the policy includes a waiting period, the exporter must wait for a defined time before initiating the claims process.
How Etihad Credit Insurance (ECI) helps
Etihad Credit Insurance (ECI) supports exporters by:
- Providing clarity on timelines
- Guiding businesses through payment delays
- Ensuring structured claims processes
👉 Explore ECI’s trade credit insurance solutions.