Trade credit insurance

What is trade credit insurance?

Policy and Credit Limits

• Merchant fills-in the customer application, describing the business, the sales , the buyers, etc.
• CST issues the offer to the client.
• Signature of trade credit insurance policy between the merchant, the insurer & CST.
• Merchant sends buyers’ applications to CST
• CST provides the “credit limit advices” per buyer

Production and defaults

• Merchant reports sales and payment delays on monthly basis
• Merchant declares a claim two months following invoice due date (Or payment extension period)
• CST provides a claim’s decision within two months following receipt of declaration and documents
• The insurance company settles the claim within two months of claim’s acceptance
• Rights of insured subrogated to insurance company – CST handles the recovery process

Top benefits to use trade credit insurance


against losses due to insolvency or due to default

Better rates

Negotiating better rates and limits with banks.


Investigation and assessment of the credit worthiness of new customers.


Continuous monitoring of existing customers credit worthiness.