Trade Credit Insurance

Trade Credit Insurance policies give protection to companies against any non-payment of domestic and export invoices. They give  you a peace of mind  and  confidence to  expand and  to  provide credit terms to  your customers, thus  increasing your  ability to  sell and  take  on new  buyers. 

Our policy caters to a wide range of businesses. It covers credit terms of up to 180 days.  Longer credit terms may be considered on a case-to-case basis. 

What is Trade Credit Insurance? 

·  Risk management tool to protect your company’s account receivables against non-payment by your buyers 

·  Both your local and overseas debtors can be insured against non-payment arising from commercial risk and non-commercial risk. Commercial risk (protracted default/delayed payment or insolvency/bankruptcy of your buyer) whereas non-commercial risk (political risk) 

·  Indemnity of up to 90% 

·  Premium is a small percentage of annual insurable turnover 

Benefits 

·  Protection against non-payment of your trade debts 

·  Protection in selling to new & unfamiliar markets or buyers 

·  Protection to extend credit terms to your existing buyers 

·  Protection to increase credit limit to your existing buyers 

·  May be used as a financial management tool to obtain financing from banks or financial institutions 

Risk Cover 

·  Insolvency or Bankruptcy of your buyer 

·  Non-payment of goods accepted by your buyer 

·  Transfer delay, or delay in payment due to imposition of foreign exchange controls in your buyer’s country 

·  Cancellation or imposition of import license in your buyer’s country 

·  War and other disturbances in your buyer’s country which could affect debt settlement 

What is Not Covered 

·  Disputes between you and your buyer 

Covered Countries 

We cover your trade receivables in 164 countries worldwide. 

Note: IE Singapore 50% Premium Subsidy – under the Trade Credit Insurance Scheme (TCIS), IE Singapore will subsidize 50% of your credit insurance premium up to a maximum of S$100,000 to qualifying companies. We will assist you in the application of this subsidy. 

*Subject to IE Singapore qualifying criteria and approval. 

FAQs 

What is the cost of obtaining a credit insurance policy? 

Our premium charge is competitive. The cost  is  dependent on  the  portfolio of risks (such  as  countries) offered for credit protection, the  credit  terms  that  you offer  to  your  buyers  and your  credit   management.  Our   Business   Development Team can provide you with a quote on the recommended terms of cover once we have received your proposed portfolio for credit protection. 

Do you provide credit insurance cover for all countries? 

We provide cover to a wide range of countries, including Singapore. 

How long does it take to process claim? 

Your claim will be paid immediately if your buyer is insolvent and you have obtained acknowledgement of your debt filed with the Receiver/Manager or Liquidator. 

For default payment, the claims waiting period is 6 months from due date and for other causes of loss insured under the Policy, it is approximately 4 months. 

How do I file a claim? 

You can  file a  claim  immediately when  you  are  aware  of  any adverse information which  may  affect  the  buyer’s  payment of your invoice. Our claims officer will provide full assistance to you to help you file a claim and recommend appropriate measure to minimize your loss. 

I have no bad debts and what is the use of credit cover? 

The  credit  insurance policy  is a  risk management tool  and  it helps  you  to  stabilize  your  cash  flow, and  protects your  trade receivables in the ever-changing competitive and economic business climate.