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.

Political risk insurance protects the sale of goods or services against the risk of default of a buyer as a result of political risks that prevent the collection of bills, such as currency inconvertibility or transfer risks, war, terrorism, riots and revolution, change in Import / Export regulations, bankruptcy, expropriation, nationalization or commercial sanctions.

It is a fundamental coverage in exports especially to developing or underdeveloped countries, including exports to countries like Russia.

The guarantees and technical guarantees are widely used in the construction and civil engineering industry since the 17th century and provides a guarantee of payment of the amounts or damages due under the contract. Guarantees and technical guarantees are now increasingly common outside the construction industry, and a wide range of bonds or guarantees are available in the insurance market to support contractual obligations or comply with legal requirements.

Which are the Guarantees to first requirement (First demand Guarantees)? Can I combine this type of guarantees with the Credit Insurance?

Guarantees at the first request are guarantees issued by banks, and as its name indicates, it can be converted into funds with a simple requirement by the beneficiary. These are not related to the underlying contract and effectively deny any safeguard established in the contract, so the debtor has no capacity to interrupt the execution of the same. Bankers treat such instruments as part of a company’s line of credit.

Commercial credit insurance can be adapted to offer coverage in combination and / or in excess to the guarantees at first request.

ABK Credit designs the captive insurance program, coordinates and manages the own reinsurers for the credit risk.
In certain situations, we designed the ART Program (alternative risk transfer) combining self retention with excess cession.
We are undisputed leaders in captive reinsurance of credit risk at European level, and we believe, it is the best way to insure it.
To deepen this concept, we offer to carry out specialized training: contact us.

ABK Credit offers credit information and risk classification in combination with the specialized analysts of Credit Risk Classification Group (CRC), a leading international provider in Spain of credit risk analysis and monitoring. The cross-opinion of a subscriber of ABK Credit and a CRC analyst offers a scope and quality far superior to the “online commercial report”, the latter present many errors, inconsistencies or little information, since they are usually elaborated by “scooring programs” without intervention of Analysts.

The associated Underwriters of ABK Credit are involved in the debt collection, since the debt collection strategy designed by you that have knowledge about your client and the sector is much more efficient than the one that a credit insurer can offer. In this sense, we combine external / internal means to maximize the debt collection.

In case of needing external debt collection, ABK Credit has an associated debt collection company (ELSECREDIT www.elsecredit.com) that assists in the management of unpaid debts in combination with the Insurers. This differential fact allows a greater flexibility in the management of the defaulters, which entails a ratio of debt collectionof defaulters higher than if the failure is managed by the Insurer only.

In the reduction of the cost of the delinquency, the improvement of the debt collectionis key, and the effort made by ABK in the development of the debt collectionis unique in the Iberian Peninsula with more than 30 people dedicated to this work.

The Insurers and, therefore, the mediation specialists such as ABK Credit are expanding their service, not only to the insurance of the clients account but also to provide solutions for the financing of the insured clients.

ABK Credit jointly with the members of CREDEA have detailed knowledge of these products ”Trade finance”, as well as close working relationships with banks and other financial companies.

ABK Credit can work with you to decide which financial institution is more able to meet your client account financing needs.