Trade Credit Insurance

Jones, Peter M.

Trade Credit Insurance

2010

Jones, Peter M.

The sales of goods and services are exposed to a significant number of risks, many of which are not within the control of the supplier. The highest of these risks and one that can have a catastrophic impact on the viability of a supplier, is the failure of a buyer to pay for the goods or services it has purchased. In today's challenged domestic and global economic climate, recognizing and managing future risks has become a priority for businesses. Losses attributed to non-payment of a trade debt or bankruptcy can and do occur regularly. Default rates vary by industry and country from year-to-year, and no industry or company is immune from trade credit risk. The essential value of trade credit insurance is that it provides not only peace of mind to the supplier, who can be assured that their trade is protected, but also valuable market intelligence on the financial viability of the supplier's customers, and, in the case of buyers in foreign countries, on any trading risks peculiar to those countries. As well as providing an insurance policy that matches the client's patterns of business, trade credit insurers will establish the level of cover that can reasonably be provided to the supplier for trade with each individual buyer, by analyzing the buyer's financial status, profitability, liquidity, size, sector, payment behavior and location.

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AGROVOC Keywords

agricultural insurance assets bankruptcy banks capital market cash flow consumer protection employment expropriation financial institutions financial situation housing income information systems insurance international bank international trade jurisdiction laws liability liquidity pension profitability risk assessment risk management savings treaties volatility working capital

Bibliographic information

Other Subjects

Global trade; Accounts receivables; Export credit insurance; Claim; Financial health; Financial instruments; Turnover; Merger; Casualty insurance; Credit decisions; Risk management tool; Credit terms; Credit lines; Credit information; Insurance industry; Life insurers; Judgement; Credit-worthiness; Protection insurance; Insurance companies; Indemnification; Indemnity; Risk of default; National investment; Credit risk; Export credit; Collection procedures; Business failures; Underwriter; Macroeconomic level; Insurance policy; Bad debts; Debts; Transaction; Account receivable; Face value; Risk exposures; Result of insolvency; Political risk; Inspections; Legal action; Trade credit; Outsourcing; Debtors; Insurance product; Lending institutions; Gross profit; Business credit; Risky asset; Valid claim; Equity investment; Insurance company; Receivables financing; Outstanding amount; Currency; Private sector development; Insolvencies; Trade flows; Capital markets; Letter of credit; Bad debt; Bank guarantee; Insurer; Borrowing capacity; Bankruptcy protection; Loss ratio; Debt collection; Insolvent; Export sector; Insurance claims; Global capital; Default rates; Business insurance; Coverage; Trades; Trading; Collection services; Commercial bank; Insurance policies; Jurisdictions; Financial strength; Corporate insolvency; Political risks; Delivery of goods; Asset structures; Rates; Political risk insurance; Private insurance companies; Balance sheet; Late payment; Foreign buyers; Subsidiaries; Bad debt losses; Terms of credit; Receiver; Capital market investors; Credit worthiness; Risk exposure; Investing; Foreign government; Reinsurance treaty; Portfolios; Insurance coverage; Customer base; Nonpayment; Outstanding debt; Contractual right; Shareholder; Financial crisis; Debt default; Factoring; Insurance program; Market share; Risk sharing; Brokers; Liquidator; Insurance contracts; Insurance products; Trade sector; Housing finance; Economic stability; Financial difficulty; Global capital markets; Financial statements; Insurance premiums; Financial sector; Domestic credit; Microinsurance; Risk underwriting; Late payments; Credit buyer; Accrual accounting; Accounts receivable financing; Adverse selection; Right of subrogation; Bankrupt; Public records; Private insurance; Local currency; Payment terms; Credit risks; Developing markets; Loan; Proportional reinsurance; Reinsurance; Indemnity insurance; Commercial paper; Global market; Accounts receivable; Portfolio; Reinsurers; Lender; Non-life insurance; Risk insurance; Trade debt; Financial services; Credit agencies; Collection procedure; Credit default; Collateral; Credit default swaps; Financial difficulties; Reputation; Insolvency; Payment in advance; Majority shareholder; Credit insurance; Insurance market; International credit; Surety; Commercial insurance; Event of insolvency; Debt collections; Credit line; Letters of credit; Credit losses; Capital markets development; Amount dues; Receivables; Auction

Language

English

In AGRIS since: 2021-06-15

Format: AGRIS AP

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Links

http://hdl.handle.net/10986/27726

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