In today's trade, the most common prerequisite for realizing a certain agreement is to sell on an open account. In this way, a credit relationship created between the supplier and the buyer carries additional costs and risks for the supplier. Besides the fact that the supplier will wait longer to collect the receivables, the value of the receivables will reduce gradually each day. Trade competition, especially on the international market, is far too uncertain, and the implementation of projects incurs a lot of risks. The risk may be reduced by appropriate insurance instruments.
Credit insurance is an instrument for supporting Macedonian companies which sell on open accounts, on the domestic and international market, by insuring their short-term receivables (up to 360 days) against commercial and political risks.
The purpose of credit insurance is to reduce the risks Macedonian companies are facing
Commercial risks arise when the buyer does not pay due to insolvency (180 days of extended non-payment) or bankruptcy.
Political risks, on the other hand, arise when the buyer does not pay due to certain events in the country, such as war, civil unrest, occupation, revolution, cancellation of license, breach of contract, moratorium...
Beneficiaries of credit insurance may be companies registered in the Republic of North Macedonia which sell goods and services on an open account, with a payment term of up to 360 days.
Credit insurance provides: