FAQS

To understand what credit risk exposure is, we first need to understand exactly what credit risk itself is. Credit risk is the risk posed to a company if a third party client they loan to does not honor an agreement, usually the repayment of money. Credit risk exposure is the total and maximum amount of […]

If you’re part of a business that has many international clients, you’re probably somewhat familiar with trade credit insurance and factoring. But you may be a bit confused about the difference between the two, how they are related – and how they’re different. In this article, we’ll explain all of the basics, to help you […]

Commercial trade insurance is critical for businesses in today’s competitive global economy. Insurance for trade and commerce enables businesses to create a robust risk management policy, while trade credit insurance protects them from customer bankruptcy and instability that can occur in foreign countries. There are several different types of insurance for trade and commerce that […]

When it comes to satisfying payment obligations for international trade, there are a number of different ways you can ensure the proper payment for your goods or services – like a letter of credit, performance guarantee, bank guarantee or credit insurance. Of these, credit insurance and bank guarantees are two of the most popular ways […]

Is your business engaging in cross-border trade with a developing country? While emerging markets can offer companies unique opportunities, they aren’t without their risks. Companies with overseas operations in emerging markets are exposed to political violence and financial crisis that can leave their business at risk of asset and income loss. When you work in […]

If you’re working in any country where there is a risk of political instability, and your assets or products could be at risk, insuring yourself with a political risk insurance policy is likely a good idea. But what’s included in political risk insurance? Will you be covered in every situation? Can you add additional coverage […]

Export credit insurance, often also known as trade credit insurance, is a useful way to insure your accounts receivable. But is it right for you? Many alternatives exist, such as invoice factoring and letters of credit issued by an export/import bank, as well as some other forms of insurance for exporters. So, in this article, […]

If you want to minimize your credit risk and bad debts when extending lines of credit to your customers, export credit insurance – also called trade credit insurance – is a great option. Export credit insurance protects you from protracted default when foreign buyers fail to pay for your product or services, and helps cover […]

If you run a small business, and you’re interested in learning more about trade finance, you’re in the right place. In this article, Niche Trade Credit will take a deep look at two of the most common financial tools used by small businesses, especially those involved with importing, exporting, and global trade: trade credit and […]