Credit insurance policies offer protection for companies against the insolvency or non-payment of their commercial customers for the sale of products or services. Credit insurance also provides advantages for financing by adding beneficiary clauses in favor of the financing entities.
Which are the alternatives to export credit insurance?
With banking and credit restrictions in many countries, foreign buyers are increasingly reluctant to pay in advance or tie their collateral in support of credit letters. While a credit letter transfers the credit risk of the buyer to your bank you are likely to want confirmation from a trusted bank in your own country.
Will export credit insurance hinder my sales force?
Subscribers have very sophisticated information networks that, coupled with insurance coverage, help exporters not only to reduce delinquency, but also locate the best buyers and increase sales volumes. The credit insurance along with the professional classification granted by ABK Credit, will allow you to open new markets that otherwise you would consider too risky.
How can I finance the cost of exporting?
Many funders are reluctant to recognize export credits as a reliable guarantee without credit insurance, but they take the opposite view once there is a contracted credit insurance policy. We have credit insurance specialists willing to help with the financing organization if your current provider can not assist you.
Where can I find information about export markets?
Both ABK Credit and the Insurers that specialize in export credit Insurance invest a large amount of resources in market intelligence, as a consequence we help their insured clients with detailed information of each country, local commercial practice, as well as information of specific buyers. In addition, ABK Credit has an extensive network of contacts in export support services, including government records, databases that include more than 200 sources in more than 150 countries.
How can I find the most up-to-date information about my export buyers?
ABK Credit has a strategic alliance with a classification company at the highest level in quality of analysis, with access to 200 data sources between global databases and government records of commercial and non-payment information. All of them allow the ABK Subscriber to identify, analyze and classify risks in parallel with the Insurers, and most importantly sharing the information with you to increase sales in good buyers and reduce in the deficient ones.
Our Worldwide CREDEA network offers local support for export policy holders, and members work together to contact local buyers to obtain up-to-date information in support of key boundaries.
There are some markets too risky to deal with them?
Hyperinflation in Zimbabwe, totalitarianism in North Korea and piracy in Somalia are some of the extreme cases that could dissuade exporters. But aside from a limited list of countries there is usually a credit insurance solution for most markets. When the commercial credit insurance market can not help, there is often help through government-sponsored debtor protection plans.
I have a subsidiary abroad. Can I include its sales in my policy?
Credit insurance underwriters are usually willing to attend to co-insured policies as long as there is no insurance license or local tax regulations that need consideration. When these difficulties prevent insurance in a policy in the Head Office, ABK Credit offers the possibility of issuing policies in different countries through the Credea Associates.