Trade Credit
Insurance
WHAT IS TRADE CREDIT INSURANCE
Credit sales are at the heart of many business transactions. However, they can also pose a significant risk: buyers are often unable or unwilling to meet their financial obligations within the agreed timeframe. This inability or delay can become a problem even for the seller’s business viability.
The answer to this problem is trade credit insurance: a solution that protects the insured from the insolvency of its customers and supports business growth.
How Trade Credit Insurance works
An insurance policy is crafted for the seller, which defines the terms, limits, premiums, and claims process if their buyer is unable to pay, whether it’s due to insolvency or protracted default. If such a problem arises, the debt collection procedure begins.
The advantages of Trade Credit Insurance
There are several advantages in trade credit insurance for businesses. This insurance solution:
01
Covers businesses based in Greece or Greek-owned businesses based in foreign countries.
02
Protects insured businesses against cases of payment delays or proven insolvency of their customers.
03
Compensates with simple procedures and within a predetermined timeframe.
04
Serves as a useful tool in analyzing and monitoring the solvency of the business’s customers through continuous collection of data.
05
Improves the operation of insured’s Credit Control Department, supporting the prevention or even the reduction of credit risks.
06
Supports the insured’s business plans for expansion into new markets.
CREDIT INSURANCE: FAQ
Is there a difference between credit insurance and surety bonds?
These are two different insurance solutions, responding to different business needs. Trade Credit insurance protects the business from losses arising from the insolvency or protracted default of their customers, while Surety bonds allow businesses to guarantee through an insurance company the fulfillment of a variety of obligations.
Can I choose trade credit insurance for my business regardless of its size?
Every business, small or medium, in Greece or abroad can have a trade credit insurance policy.
Does credit insurance affect my credit rating?
We review the creditworthiness of existing and new customers. Based on that, a credit limit is set for each business which is the maximum amount for which you will be indemnified.
Why Choose Gkiolekas Insurance Solutions
We have gained significant experience and specialization in Trade Credit Insurance since our first day of business. At the same time, being part of NAK Group, means that through the Credea network, an independent network of insurance brokers with 46 members worldwide, we can negotiate offers and premiums with all Credit Underwriters, modify policy terms and serve every market.