Trade Credit Insurance
If you are selling to your customers on unsecured credit terms, your biggest fear will be the client to paying you. Non-payment can be due to various reasons and trade credit insurance serves to protect your company from the non-payment of your clients.The policy is suitable for companies with domestic sales or export business.
For domestic sales, trade credit insurance would cover for risk involving insolvency of clients and default of payment. If you are also exporting to overseas, your other concerns which trade credit insurance can address are public buyer risk, payment transfer risk, import restrictions risk, political risk, war and unrest risk etc.
With the trade credit insurance in place, your debtors listing will be managed with the insurer professional credit control team. You will no longer have to worry for payment default of your customers. This will serve to protect your balance and company profit from bad debts.
- Insured must be Singapore-based, registered with the Accounting and have Corporate Regulatory Authority of Singapore (ACRA)
- Have at least 3 strategic business functions in Singapore
- Average turnover of insured and its applicants should not exceed S$100million over the last 3 financial years
- Insured has a minimum paid-up capital of S$50,000
- Insured has a management team that consists of at least 3 managerial staff who are Singapore citizens or PRs
- The insured incurred at least S$250,000 of total Business Spending for each of the last 3 years
- Effective control of bad debts
- Balance sheet protection
- Cash flow relief
- Alternative to letters of credit
- Expand sales securely in new
- Obtain possible higher levels of funding at better rates
- Access to credit expertise
- Cost saving
- Comprehensive cover for domestic and/or export sales
- Cover of commercial and political
- Indemnity level up to 90%
- Independent review of the risk profile of your trading partners
- The volume of insurable turnover
- The spread of risk
- The destination of sales
- Industry sector
- Terms of payment
Trade credit insurance scheme by enterprise Singapore
The Trade Credit Insurance Scheme (TCIS) is designed to educate Singapore companies on the benefits of using Trade Credit Insurance (TCI) as a financing and risk management tool to mitigate their buyer’s default risks. With added protection through trade credit insurance, companies can be better protected against their counterparty risks and more confident to explore new markets and buyers.
How To Apply
Please fill-in below details to proceed with your application.