Insurance of trade receivables financed by the factor
We insure receivables and we have years of experience in working with factoring companies - both banks and factors from outside of the banking sector. We offer insurance of both export factoring and domestic factoring.
What are the conditions?
- We insure undisputed receivables.
- We insure receivables purchased by a factor arising from sales of goods or services, payable within 2 years for exports and up to 1 year for domestic sales.
- The debts should be repurchased before the payment deadline, but no later than 30 days from the date of invoice.
What are the risks we insure?
Commercial risk, namely:
- bankruptcy of the debtor,
- a delay in payment of receivables (the debtor is in arrears with payment for the supplies or services for more than 90 days).
For export factoring insurance, the scope of cover also extends to political risk, i.e. a situation where the debtor has not settled his obligations as a result of the decision made by the authorities of the debtor’s country or a change in legal provisions in the debtor’s country.