What does Trade Credit Insurance provide?

Trade Receivables Insurance is a system that guarantees your receivables to protect your cash flow. Trade Receivables Insurance protects against the risk of non-payment of trade debts. It allows you to manage the risks in your commercial activities in the most reliable way. It prevents receivables that are not paid on the specified date after the forward sale from causing trouble to the companies and disrupting their cash flows. It ensures a healthy cash flow and enables companies to fulfill their commitments comfortably.

With Trade Receivables Insurance, it eliminates the disruptions in the future financial plans of the companies. The ultimate purpose of credit insurance, which compensates for losses due to non-payment of a commercial receivable, is to protect you against large-scale losses. In case of bankruptcy or default of your customers, compensation is paid.

What are the benefits of Trade Receivables Insurance?

With Trade Receivables Insurance, secure the forward receivables that make up approximately 40% of the receivables on the balance sheet.
Trade more securely and profitably with Trade Receivables Insurance. Manage your cash flow securely and without risk.
It offers your customers the opportunity to make more sales with insurance assurance and increases your turnover.
Trade Receivables Insurance provides up-to-date data on the financial and financial status of buyers and provides close monitoring services.
Regardless of which country your buyer is in, losses that may arise due to non-payment of a commercial receivable, both for the domestic market and for export, can be compensated. Allianz Trade Trade Receivables Insurance takes over the collection authority and saves you from legal and bureaucratic procedures.
With its Trade Receivables Insurance risk management service, it ensures that the financial and commercial performance of the buyers are followed up-to-date throughout the policy period. If there is a deterioration over time, the risk is anticipated and tried to be avoided.

Why do you need to have Trade Receivables Insurance?

If you want to reduce the time you spend on managing your receivables and focus on the future of your company while expanding your business, you can take advantage of the benefits of credit insurance. Trade Receivables Insurance provides better credit control as well as better protection against major losses due to unpaid debts. It increases the quality of receivables and this plays an important role in obtaining revolving funds from credit institutions on better terms.

With trade credit insurance, your credit limit is defined for how much risk you can take while managing your customer relations. Set limits guide you in making decisions. While you continue to trade with your existing customers within the limits of your risk coverage, automatic limit updates provide you with new information while managing your customers.

Exporting companies, on the other hand, protect themselves against political risks such as the government canceling a contract, enforcing a regulation preventing the export or import of a commodity or the transfer of cash, and not being paid due to war in the buyer’s country.

Which sales are covered by Trade Receivables Insurance?

Securing unsecured receivables arising from open account forward sales with trade credit insurance will help your company do better in the future. Term invoices issued for open account (including check) sales made to private sector companies and which do not have a bank guarantee in return are covered by Trade Receivables Insurance.

Which sales receivables cannot be secured?

Cash, public, trade between group companies, bank-guaranteed sales to private companies are not covered by Allianz Trade Credit Insurance.

Who uses Trade Receivables Insurance?

Any company that operates an open account with its customers can benefit from trade credit insurance. Allianz Trade has a wide client portfolio consisting of companies of different sizes, including small and medium-sized companies as well as multinational companies. In addition to companies operating in the service sector, companies that trade in commodities in different sectors of the economy also use commercial credit insurance.

What are the factors affecting the Trade Receivables Insurance policy premium?

The main factors affecting the premium of the policy are; Variables such as the size of the insurable turnover, uncollectible receivables in the past and present, the sales term, the creditworthiness of the buyers, the countries where the buyers are located, and the limit amounts requested for the buyers.

What risks are covered regarding my trade receivables?

Allianz Trade Credit Insurance covers your domestic and export-oriented receivables, excluding war, collision, revolution, uprising, etc., nuclear risks, commercial disputes between the buyer and the seller.

How is the compensation collection made for the trade receivable under guarantee?

Collection processes begin with the claim for damage. First of all, it is tried to make collection through amicable way. During the collection process, you should leave the communication with the debtor and the responsibility of collection to us.

If a payment and/or a payment plan cannot be obtained after the settlement through the settlement, the damage file is forwarded to the lawyers to initiate the legal proceedings and a legal process is initiated on your behalf for all the risk. Local collection facilities in all countries where our company is located with local law offices come into play for you. In this process, your support by completing the documents/information requested from you quickly and completely will speed up the collection.

The biggest difference and strength of our company is that your receivables are followed up by experts in that country, thanks to our international collection offices. After the indemnity payment, collection transactions are carried out by taking into account the entire risk balance, and the insurer is involved in the lawsuit for the part of this balance up to the compensation amount. For this reason, while the collections up to the compensation amount are paid to the insurer’s accounts, when the insurer has no receivables arising from the compensation paid, the collections made above the compensation amount will be paid to you. In other words, even after the compensation is paid, we continue to follow up on the amount of risk that is not covered by the compensation, which belongs to you. This process varies according to the conditions in your policy.

When will compensation be paid?

Your compensation will be paid to you within 30 days, starting with the receipt of the damage application documents and following the waiting period specified in your policy. We would like to remind you that the waiting period begins with the complete submission of the damage documents to us. In the event of a dispute between you and the debtor, the payment of compensation is suspended until the dispute is resolved. We expect the dispute to be resolved between you and your buyer and we will follow the process. Before the compensation calculation, you may request the current current account statement and additional documents if necessary.

We will send you a “Damage Compensation Receipt” prior to the compensation payment. After this receipt is signed and stamped by the signatories, the original must be sent to us. Along with these documents, a circular of signature and, if necessary, other documents such as the commercial registry newspaper, tax plate may be requested.

In order to be able to pay the compensation, your turnover notifications must be made completely, the premium and the invoices issued to you must be paid on time, and the information and documents requested by us for the follow-up of the processes must be sent completely and as soon as possible.

How will legal costs be applied?

You will be informed that the collection has started. If the collection cannot be achieved through amicable means, you will be informed that this process has ended and legal proceedings have been initiated. All legal proceedings are followed on your behalf over the total risk balance until the compensation payment. In order to initiate the legal process, a notarized power of attorney and 3 stamped and signed attorneyship agreements will be requested from you.

Success fee will be invoiced to you based on the rates in your policy over the collection amount. The legal transaction costs that will occur in the files are shared with you. This sharing is made at the rate determined in your policy. In the collection process, if all our efforts and legal initiatives are ineffective, it is decided that the collection cannot be made and the follow-up is stopped by us; The file is closed and you are informed that the collection process has ended.

Who carries out the claim collection process for my secured receivable?

Local collection facilities in all countries where our company is located with local law offices come into play for you.

The biggest difference and strength of our company is that, thanks to our international collection offices, your claim is followed up by experts together with our Claims and Collection team in that country.