Credit insurance is insurance against non payment for your exports by overseas customers. The Irish government is no longer active in short term credit insurance and will only consider on a case by case basis medium term cover for political risk.
Most short term cover (usually up to 180) days is provided on a commercial basis. The main provider in Ireland is Insurance Corporation of Ireland (ICI). However with the opening up of the insurance market by the EC we can expect greater competition for shares of Ireland's credit insurance market.
The short term export finance scheme has also been withdrawn and there does not appear to be a lot of activity in the medium term scheme.
Given the trend in poor payment practice export credit insurance is worth considering. Banks will accept assignments of credit insurance policies as security for advances. However, the existence of a credit insurance policy does not mean finance will be available. It is only one part though an important part of a customers overall security position.
This material has been provided courtesy
of Obrico Ltd Global Trade & Finance.
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