Suppliers often ask their foreign or local customers to pay for goods in full or in part in advance. When a supplier is unable to fulfill its obligations and return an advance payment, trade credit insurance will allow up to 90% of the prepayment amount to be recovered. (Companies are often asked to pay international and local suppliers up front for capital and quasi-capital goods. When the supplier cannot fulfill their obligation and cannot return any advance payments made before shipping, Advance Payment Insurance covers up to 90% of your financial losses.)
What risks are covered?
- Long overdue refund of advance payment in case of non-delivery of goods
- Bankruptcy/insolvency of supplier
How Advance Payment Insurance can help?
- Protect your business from losses due to uncollected advance payment
- Allow you to get discounts from suppliers in exchange for prepayment
- Provide information on your suppliers
- You will be able to purchase new products in new countries safely
How to insure Advance Payments
- QuestionnaireFill out an insurance questionnaire with a list of Suppliers for insurance, sign a letter of appointment for a broker.
- TenderWe will conduct a tender among all specialized insurers and provide you with a bid comparison.
- ContractingWe will help you negotiate the best insurance terms with maximum limit coverage and make sure the text of the contract matches your business processes.
- TrainingWe will advise you on administering an insurance contract to ensure you receive a guaranteed insurance indemnification.
- AdministrationRequest new credit limits from your insurer, submit shipment declarations and give timely notice of overdues. We advise you throughout the entire contract.
- Insured Event After notification of overdues, you should try to collect the debt yourself or together with the insurer. If you cannot get the money back in six months or the debtor goes bankrupt, the insurer will pay you up to 85-90% of the debt.