Credit Insurance

Credit Insurance

Credit insurance covers exporters against a range of trading-related risks.

Credit Insurance

Credit insurance covers exporters against a range of trading-related risks, including insolvency/bankruptcy of the importer, non-acceptance of the goods or delayed payment by the importer. Although credit insurance may be available for domestic trade, it is more likely to be used by exporters because of the additional political and currency risk involved in trading with businesses in other countries.

Credit insurance is usually offered either on a single-buyer basis, for key accounts, or on a portfolio multi-buyer basis.  Policies may also be offered over a range of terms:  short-term (which are usually between 30 and 180 days but may be up to one year), medium-term (for purchases up to three years and which could include capital goods such as mcahinery) and long-term, which may be used for makor infrastructural projects.

Companies that offer credit insurance generally also provide collections and credit management services.  For a list of businesses offering credit insurance, please visit the website of the Irish Institute of Credit Management here.