As the world faces the consequences of the Covid -19 pandemic, one thing is for sure, businesses will have to face reduced demand cash flow issues due to credit squeeze and supply chain disruptions.
As the world faces the consequences of the Covid -19 pandemic, one thing is for sure, businesses will have to face reduced demand cash flow issues due to credit squeeze and supply chain disruptions.
As the world faces the unprecedented consequences of the Covid -19 pandemic, one thing is for sure, businesses big or small will have to face reduced demand (atleast in the short term), cash flow issues due to credit squeeze and supply chain disruptions. Added to these, reduction in price of oil will have implications for the Gulf region.
The current concern of governments around the world is to save lives due to which a lockdown has been implemented in most of the countries. As and when the curve flattens, the lockdown will be slowly removed and economic activity would revive. At this point, one of the key challenges that businesses would face is liquidity. Most businesses would seek trade credit from their suppliers and this is going to play an important role in further business growth. However, most suppliers would be wary to provide any extended credit lines and might look at further reducing the limit.
It is in this context trade credit insurance can be helpful. A credit insurer would underwrite trade receivables of the insured and compensate in the event of a default of payment by the buyer. The products available in the UAE market generally cover the following risks:
| Credit risks associated with export of goods | Credit risks associated with local sales |
|---|---|
| Protracted Default of payment | Protracted Default of payment |
| Buyer’s insolvency/bankruptcy, | Buyer’s insolvency/bankruptcy, |
| Commercial risks | Commercial risks |
| Payment moratorium | |
| Payment defaults due to war, civil disorder, natural disasters. |
In case you need more information on credit insurance, please do not hesitate to call you relationship manager or write to Suveen.pk@gargashinsurance.com
Car insurance is the most important part of owning a car. But what happens when you plan to switch cars? Will the old policy apply? Or will you be required to apply for a new one? Read more...
Third-party car insurance is the minimum cover required by UAE law, is affordable, covers the bare minimum, and provides injury cover. What happens, however, when not insured with a third-party insurance plan?
Our cars need proper care, routine maintenance, cleanliness and check-ups to ensure proper well-being. How else can you ensure long car life longevity? Read more...
