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Credit Insurance

   Also found in: Wikipedia 0.01 sec.
Credit insurance
Insurance against abnormal losses due to unpaid accounts receivable.

Credit Insurance
An insurance policy protecting a company in the event that it does not collect an unusually large amount of its accounts receivable. A company's accounts receivable represent what it is owed on its credit sales. Every company that makes credit sales takes the risk that its customers will not or cannot pay what they owe. Credit insurance is one way to reduce this risk. See also: Factoring.


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Edward Rimmer, chief executive of Liverpool-based Bibby Financial Services, said: "At last, the Government has realised more needs to be done to drum up usage of its trade credit insurance scheme.
In a region such as the North East, which is a net exporter, trade credit insurance is a critical issue for many firms.
man) indicate that Lebanon ranked third among 12 Arab countries in the value of overall export credit insurance contracts signed in 2008, as reported by Lebanon This Week, Byblos Bank Group's economic publication.
 
 
 
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