Trade credit insurance usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of protracted ...TradecreditinsuranceFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchThisarticleneedsadditionalcitationsforverification.Pleasehelpimprovethisarticlebyaddingcitationstoreliablesources.Unsourcedmaterialmaybechallengedandremoved.Findsources: "Tradecreditinsurance" – news ·newspapers ·books ·scholar ·JSTOR(March2009)(Learnhowandwhentoremovethistemplatemessage)Tradecreditinsurance,businesscreditinsurance,exportcreditinsurance,orcreditinsuranceisaninsurancepolicyandariskmanagementproductofferedbyprivateinsurancecompaniesandgovernmentalexportcreditagenciestobusinessentitieswishingtoprotecttheiraccountsreceivablefromlossduetocreditriskssuchasprotracteddefault,insolvencyorbankruptcy.Thisinsuranceproductisatypeofpropertyandcasualtyinsurance,andshouldnotbeconfusedwithsuchproductsascreditlifeorcreditdisabilityinsurance,whichindividualsobtaintoprotectagainsttheriskoflossofincomeneededtopaydebts.Tradecreditinsurancecanincludeacomponentofpoliticalriskinsurancewhichisofferedbythesameinsurerstoinsuretheriskofnon-paymentbyforeignbuyersduetocurrencyissues,politicalunrest,expropriationetc.Thispointstothemajorroletradecreditinsuranceplaysinfacilitatinginternationaltrade.Tradecreditisofferedbyvendorstotheircustomersasanalternativetoprepaymentorcashondeliveryterms,providingtimeforthecustomertogenerateincomefromsalestopayfortheproductorservice.Thisrequiresthevendortoassumenon-paymentrisk.Inalocalordomesticsituationaswellasinanexporttransaction,theriskincreaseswhenlaws,customscommunicationsandcustomer'sreputationarenotfullyunderstood.Inadditiontoincreasedriskofnon-payment,internationaltradepresentstheproblemofthetimebetweenproductshipmentanditsavailabilityforsale.Theaccountreceivableislikealoanandrepresentscapitalinvested,andoftenborrowed,bythevendor.Butthisisnotasecureassetuntilitispaid.Ifthecustomer'sdebtiscredit