FREQUENTLY ASKED QUESTIONS

Who Can Use Trade Credit Insurance?
Any company that sells on open account terms and issues deferred invoices to corporate clients can use trade credit insurance.

What is Insurable Turnover?
Insurable turnover is the remaining open account turnover after deducting cash sales, intra-group sales, sales secured by bank guarantees, direct debit systems (DBS), public sector and individual sales, and previously uninsured turnover from the annual gross turnover.

Is There a Minimum Turnover Requirement?
For cost efficiency, the annual insurable turnover is generally recommended to be at least TRY 10,000,000.

Can I Insure Only High-Risk Customers?
No. Trade credit insurance generally covers all deferred sales of a company, although certain exceptions may apply in special cases.

What Portion of the Risk is Covered?
Typically, up to 90% of the approved credit limit is covered.

What Determines the Cost of Trade Credit Insurance?
Costs depend on past claims history, industry, customer creditworthiness, economic conditions, insurer risk appetite, and applied risk management practices.

Are Cheque-Based Sales Covered?
Yes. Since cheques are considered a payment tool rather than a guarantee, they carry risk and can be included in coverage.

Who Pays Legal Costs in Case of a Claim?
Legal expenses within the policy limits are covered by the insurer.

Why Work with a Reliable Institution?
Trade credit insurance combined with effective policy management ensures secure trade, which requires an experienced professional team.

Is It Possible to Issue a Policy for a Single Buyer?
Although not common in Turkey, it is possible; however, it may be more expensive.

What is the Policy Duration?
Policies are typically issued for 12 months.

Are Bankruptcy, Postponement of Bankruptcy, or Concordat Covered?
Bankruptcy and court-approved postponement are covered and typically compensated within 30 days. Concordat is treated as default and compensated within approximately 150 days after notification.

When is Claim Compensation Paid?
Approximately 30 days for bankruptcy cases and 150 days for default situations.

Is Invoice Declaration Required?
Invoices are only requested in case of a claim; otherwise, no regular submission is required.

Can the Policy Be Used with Bank Guarantees?
Yes. Insurance limits can complement insufficient bank guarantees.

Can the Policy Be Used as a Financing Tool?
Yes. The policy can be assigned to banks to obtain financing under more favorable conditions.