Trade Credit Insurance for UAE Businesses

Trade credit insurance protects your business if customers don't pay what they owe, because they become insolvent or simply fail to pay for a long period. The policy usually pays out most of the unpaid invoice value, often around 90%.

Any business that sells to other businesses on credit terms, such as distributors, manufacturers, traders and exporters. It's especially valuable if a few large customers make up a big share of your sales, since one unpaid invoice could seriously hurt your cash flow.

Yes. Policies can cover customers in the UAE, abroad, or both. For export sales, you can also add political risk cover, which protects you if payment is blocked by events like currency transfer restrictions, war or import bans in the buyer's country.

Protracted default is when a customer fails to pay within a set period after the due date, even though they haven't been declared insolvent. Most trade credit policies cover it, so you don't have to wait for formal bankruptcy proceedings to claim.

The insurer assesses each customer's financial strength and sets a credit limit, which is the maximum amount covered for that customer. Sales above the limit aren't covered, so it's important to check limits before extending more credit. Smaller accounts can often be covered within a discretionary limit you set yourself.

Yes. Insured receivables are more attractive to banks, and many policies can be assigned to your bank, which can help you access better financing terms or larger facilities.

No. You still manage credit and collections, but the insurer's monitoring of your customers gives you an early warning when a customer's risk rises. You'll need to follow the policy's procedures, such as reporting overdue accounts on time, to keep your cover valid.

Insurers look at your insured turnover, industry, where your customers are based and how creditworthy they are, your payment terms, your bad debt history, and the level of cover you choose. Premiums are usually a small percentage of insured sales.