Hedging Credit Risks

Every company that grants its clients supplier credit is exposed to credit risks stemming from the chance of the client’s insolvency or financial difficulties, or a political event in his country that could prevent the transfer of the agreed payments. The “receivables” line in the balance sheet is a significant asset for any company (in global terms a third of the balance sheet).

Just as a company protects its other balance sheet assets, such as property, inventory, etc., with the appropriate insurance, the company should also hedge the credit risks and protect its receivables with ICIC credit insurance. This protection is in line with the company executives’ obligation to reduce risks and protect the company against them.

ICIC offers the following products for hedging a company’s credit risks:

Foreign trade insurance
Credit insurance in Israel
Credit insurance for subsidiaries and marketing avenues
Manufacturing cost insurance
Advance payment insurance
Performance guarantees
Receivables discounting 
Credit insurance for import transactions