Speciality Solutions for Issuing Credit
Credit insurance can be an important strategic tool for banks. When doing business with companies with credit insurance coverage, banks can be more comfortable lending against those clients’ accounts receivables. This, in turn, creates more opportunities for banks to lend more money to more clients while still managing their own risks effectively.
Product Description:
Backed by AlBaraka insurance, banks are protected and gain the confidence to lend against clients' accounts receivables. In turn, creating more opportunities for banks to lend money to more clients while managing their own risks effectively. Our credit insurance coverage protects clients from insolvencies, slow payments, and other risks to accounts receivables with data to assess and help banks choose creditworthy customers.
Benefits:
Increase the amount of eligible assets against which their client base can borrow by including international receivables, aged receivables and concentrations
Become the beneficiary on clients’ policies in the event of any losses to bad debt on receivables
Strengthen clients’ financial position by ensuring cash flow and balance sheet stability
Establish a deeper relationship with clients by developing consultative business relationships rather than simply being a lender
Justify better advance rates and less restrictive covenants with credit underwriters
Risks Covered:
Some companies want to cover the entire base of their accounts receivable while others prefer to focus coverage only on certain customer segments. No matter what approach they take, these covered companies represent a lower risk to any bank lending money against the insured receivables.