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Trade Credit Insurance can help exporters protect their receivables against non-payment risk.

However, before obtaining coverage, businesses should understand how Trade Credit Insurance works, what information may be required, and how the protection relates to their trading activities.

Understanding these fundamentals can help exporters make more informed decisions when considering Trade Credit Insurance.

What should exporters consider before applying?

Before applying for Trade Credit Insurance, exporters should have a clear understanding of their sales activities and customer portfolio.

Some important considerations include:

• The markets they currently export to
• The buyers they trade with
• The payment terms offered to customers
• The value of outstanding receivables
• The level of exposure to individual buyers

Having this information available can help businesses better understand their payment risks and identify their insurance needs.

What information may be required?

When considering Trade Credit Insurance, businesses may be asked to provide information about their operations and trading relationships.

This may include:

• General company and business information
• Annual sales or export turnover
• Details of major buyers and export markets
• Payment terms and trading history
• Existing outstanding receivables

The specific information required will depend on the type of coverage being considered.

Why is understanding the coverage important?

Trade Credit Insurance provides protection against certain non-payment risks, subject to the terms and conditions of the policy.

Before obtaining coverage, exporters should understand:

• Which buyers and transactions may be covered
• The types of non-payment risks included
• The applicable credit limits
• Their responsibilities under the policy
• The general process to follow if a payment issue arises

Understanding these elements helps businesses use Trade Credit Insurance more effectively.

A practical example

A UAE exporter supplies products to several international buyers on credit terms.

As the business expands, it considers obtaining Trade Credit Insurance to manage its payment exposure.

Before applying, the company reviews its buyer portfolio, payment terms, outstanding receivables, and export markets.

This preparation helps the exporter better understand its requirements and discuss suitable coverage options.

How Etihad Credit Insurance (ECI) helps

Etihad Credit Insurance (ECI) supports UAE exporters by:

• Helping businesses understand their payment risk exposure
• Providing guidance on available Trade Credit Insurance solutions
• Supporting the assessment of overseas buyers
• Helping exporters identify suitable risk mitigation options

👉 Explore ECI's Trade Credit Insurance solutions.