--- title: Business Credit Insurance in Dubai - Explained with Video description: Business Credit insurance protects you against your buyer’s failure or inability to pay his trade debts. image: https://www.financialplanningindubai.com/hubfs/Imported_Blog_Media/id-10097442-1.jpg --- [![Financial_Planning_in_Dubai_logo](https://www.financialplanningindubai.com/hs-fs/hubfs/Financial%20Planning%20in%20Dubai%20Logo_9090-2.png?width=90&height=90&name=Financial%20Planning%20in%20Dubai%20Logo_9090-2.png "Financial_Planning_in_Dubai_logo")](https://www.financialplanningindubai.com/?hsLang=en-gb) - [Home](https://financialplanningindubai.com/) - [Blog](https://www.financialplanningindubai.com/blog) - [Services](https://www.financialplanningindubai.com/services) - [Islamic Investments & Takaful Plans](https://www.financialplanningindubai.com/blog/salama-hyat-plus-takaful-plan) - [Medical Insurance](https://www.financialplanningindubai.com/blog/topic/medical-insurance) - [Free Resources](https://www.financialplanningindubai.com/free-finanical-tools) - Tools - Calculators - [S&P 500 Investment Calculator](https://financialplanningindubai.com/sp-500-investment-calculator/) - [Life Insurance Calculator](https://www.financialplanningindubai.com/life-insurance-calculator) - [SIP Calculator](https://financialplanningindubai.com/sip-calculator/) - [Lumpsum investment calculator](https://www.financialplanningindubai.com/lump-sum-investment-calculator) - [Inflation Calculator](https://www.financialplanningindubai.com/inflation-calculator-uae) - [Net-Worth Calculator](https://www.financialplanningindubai.com/blog/free-personal-balance-sheet-template-networth-statement) - [The Best Budget Planner for Expats](https://www.financialplanningindubai.com/expat-budget-planner) [Book A Discovery Call](https://www.financialplanningindubai.com/meetings/damodhar?hsLang=en-gb) # Business Credit Insurance in Dubai - Explained with Video ![Damodhar Mata](https://app.hubspot.com/settings/avatar/e63bc971ec29ebe6c012fd042c1a8215) [Damodhar Mata](https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata) 4 Jan 2014, 12:12:57 ###### [Business Protection and Continuty,](https://www.financialplanningindubai.com/blog/topic/business-protection-and-continuty) [Receivables Protection,](https://www.financialplanningindubai.com/blog/topic/receivables-protection) [Business Insurance Dubai,](https://www.financialplanningindubai.com/blog/topic/business-insurance-dubai) [Credit Insurance,](https://www.financialplanningindubai.com/blog/topic/credit-insurance) [Credit Insurance Dubai,](https://www.financialplanningindubai.com/blog/topic/credit-insurance-dubai) [Dubai SME](https://www.financialplanningindubai.com/blog/topic/dubai-sme) **Credit Insurance** is used to protect Business receivables or the amounts due to a company for goods supplied on credit. ## What is Credit Insurance? ![Credit Insurance helps you maintain a good relationship with your customers and suppliers.](https://www.financialplanningindubai.com/hs-fs/hubfs/Imported_Blog_Media/id-10097442-1.jpg?width=298&height=298&name=id-10097442-1.jpg) Credit insurance also called receivables protection, is a protection tool that helps mitigate both commercial and political risks that are beyond a seller’s(Your) control. It protects you against your buyer’s failure or inability to pay his trade debts. This can arise because your buyer is facing financial difficulty and becomes insolvent. Credit Insurance helps to protect you from a severe liquidity crunch, maintain a healthy balance sheet, Bad debts are kept under control, and the interest burden on the working capital loans is reduced.     It allows you to feel secure in extending more credit to your existing buyers or to pursue new, larger buyers that would have otherwise seemed too risky. It significantly reduces the risk of entering into new markets. ### Who needs Credit Insurance? ![Business Credit Insurance](https://www.financialplanningindubai.com/hs-fs/hubfs/Imported_Blog_Media/id-10066582-1.jpg?width=300&name=id-10066582-1.jpg) All companies involved in either domestic and or International sale of goods or services, with a minimum annual turnover of AED 10 Million, selling or interested in selling on credit terms of up to 180 days. All companies need to protect their financial position, better monitor their outstanding receivables and grow their credit sales with existing or new customers. ### What risks are covered? **Commercial risks:** Companies are covered against the insolvency of their customers and also their defaulting on payments. **Political risk:** Coverage against financial loss resulting directly from the government or political activities in an overseas country (such as government moratorium, non-transfer risks, cancellation of import license, and occurrence of war or revolution). ### Benefits of Credit Insurance **Protection of Company’s Riskiest Assets** – Credit Insurance protects the riskiest portion of a company’s current assets portfolio: Accounts Receivable. On average, companies have over 40% of their current assets in the form of receivables. Credit Insurance protects against a loss of this unprotected asset that can destroy a full year’s profit. **Increase in Sales** – Credit Insurance allows to generate more sales by extending larger and longer lines of credit than usually offered and penetrating new markets with confidence. **Financing / Credit Enhancement** – Companies that finance their account receivables with a bank or factor will obtain more favorable financing arrangements by leveraging their receivables as part of a receivable financing program. **Reduce Costs** - Eliminates costly L/Cs and other bank charges, and externalize collection and credit check costs. **Better Credit Risk Management Controls** – you will benefit from a database of 60+ million companies around the world, constantly updated with payment experience, updated financial, seller experience, country risk... This depth of information gives you the detailed knowledge you need when deciding to extend, reduce or decline credit. ### What is the cost of the cover? The cost cover depends on a number of factors, such as – - Annual Turnover - Insurable Turnover + Countries covered - The activity of the Debtors - Number of debtors + Bad debts - loss experienced  It ranges between 0.25% to 0.6% of the Insured amount. ### What is the duration of the policy? The policy is signed for a One-year insurance period. Terms and conditions for the renewal are discussed at least 30 days prior to the expiry of the policy cover. ### When does the insurance cover commence? Insurance cover commences on the invoice date. The policyholder must have a specific credit limit in place for the debtor at the time of invoicing. The amount of this credit limit should reflect as much as possible the maximum outstanding balance that the policyholder has in his books at any one point in time: Estimated sales turnover for the specific buyers: $6,000,000 Payment Terms: 60 days. Credit limit would be: ($6,000,000/365) X 60 days = $986,300 ## How do I make a claim? When the credit insurance policy is set up, a Maximum Credit Period (MCP) is set in the policy (90 to 180 days). If payment is not received within the maximum credit period, you must notify your insurer within 30 days and submit relevant documents supporting the claim. For further information or to avail of Credit Insurance, call me on +97150-2285405 or arrange a free consultation [Click here to arrange a free consultation](https://www.financialplanningindubai.com/meetings/damodhar?hsLang=en-gb) "Image courtesy of nokhoog\_buchachon / FreeDigitalPhotos.net" "Image courtesy of Strart Miles/ FreeDigitalPhotos.net" ![Damodhar Mata](https://app.hubspot.com/settings/avatar/e63bc971ec29ebe6c012fd042c1a8215) [Damodhar Mata](https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata) Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours... Share this article on [mailto:?subject=Check%20out%20Business%20Credit%20Insurance%20in%20Dubai%20-%20Explained%20with%20Video%20&body=Check%20out%20https://www.financialplanningindubai.com/blog/business-credit-insurance-dubai](mailto:?subject=Check%20out%20Business%20Credit%20Insurance%20in%20Dubai%20-%20Explained%20with%20Video%20&body=Check%20out%20https://www.financialplanningindubai.com/blog/business-credit-insurance-dubai) ##### Read more - [The Real C-Suite – The Only Title That Matters 🏆](https://www.financialplanningindubai.com/blog/breadwinner?hsLang=en-gb) - [The Wealth Secret 99% of Investors Ignore – Will You?](https://www.financialplanningindubai.com/blog/the-iceberg-of-investing?hsLang=en-gb) - [From Risk to Reward? The Shifting Case for China Investing](https://www.financialplanningindubai.com/blog/from-risk-to-reward-the-shifting-case-for-china-investing?hsLang=en-gb) ## Further Reading [![Business Insurance Dubai - Financial Planning in Dubai](https://www.financialplanningindubai.com/hs-fs/hubfs/Imported_Blog_Media/business-insurance-1.png?width=300&name=business-insurance-1.png)](https://www.financialplanningindubai.com/blog/2013/11/20/business-insurance-dubai?hsLang=en-gb) ###### [Business Insurance,](https://www.financialplanningindubai.com/blog/topic/business-insurance)[Business Insurance Dubai,](https://www.financialplanningindubai.com/blog/topic/business-insurance-dubai)[Business Protection Dubai,](https://www.financialplanningindubai.com/blog/topic/business-protection-dubai)[Credit Insurance Dubai,](https://www.financialplanningindubai.com/blog/topic/credit-insurance-dubai)[Group Medical Insruance,](https://www.financialplanningindubai.com/blog/topic/group-medical-insruance)[keyman insurance dubai](https://www.financialplanningindubai.com/blog/topic/keyman-insurance-dubai) ##### [Business Insurance Dubai - Financial Planning in Dubai](https://www.financialplanningindubai.com/blog/2013/11/20/business-insurance-dubai?hsLang=en-gb) UAE largely owes to the Small and Medium Enterprises for its phenomenal success as an economy and a... [Read More](https://www.financialplanningindubai.com/blog/2013/11/20/business-insurance-dubai?hsLang=en-gb) [![Private Health Insurance for Partners, Directors, Owners & Pre Retirees](https://www.financialplanningindubai.com/hs-fs/hubfs/Medical%20Insurance%20in%20Dubai%20for%20Business%20Owners%20%26%20Partners.jpg?width=300&name=Medical%20Insurance%20in%20Dubai%20for%20Business%20Owners%20&%20Partners.jpg)](https://www.financialplanningindubai.com/blog/medical-insurance-in-dubai-for-partners-directors-business-owners?hsLang=en-gb) ###### [Medical Insurance in Dubai](https://www.financialplanningindubai.com/blog/topic/medical-insurance-in-dubai) ##### [Private Health Insurance for Partners, Directors, Owners & Pre Retirees](https://www.financialplanningindubai.com/blog/medical-insurance-in-dubai-for-partners-directors-business-owners?hsLang=en-gb) Business Owners/Partners/Directors are the Key Pillars of an organization! Their good health and... [Read More](https://www.financialplanningindubai.com/blog/medical-insurance-in-dubai-for-partners-directors-business-owners?hsLang=en-gb) [![List of Medical Insurance companies in Dubai](https://www.financialplanningindubai.com/hs-fs/hubfs/Stock%20images/Red%20Office%20Folder%20with%20Inscription%20Health%20Insurance%20on%20Office%20Desktop%20with%20Office%20Supplies%20and%20Modern%20Laptop.%20Business%20Concept%20on%20Blurred%20Background.%20Toned%20Image..jpeg?width=300&name=Red%20Office%20Folder%20with%20Inscription%20Health%20Insurance%20on%20Office%20Desktop%20with%20Office%20Supplies%20and%20Modern%20Laptop.%20Business%20Concept%20on%20Blurred%20Background.%20Toned%20Image..jpeg)](https://www.financialplanningindubai.com/blog/list-of-medical-insurance-companies-in-dubai?hsLang=en-gb) ###### [Medical Insurance](https://www.financialplanningindubai.com/blog/topic/medical-insurance) ##### [List of Medical Insurance companies in Dubai](https://www.financialplanningindubai.com/blog/list-of-medical-insurance-companies-in-dubai?hsLang=en-gb) The post provides a list of Medical Insurance companies in Dubai. [Read More](https://www.financialplanningindubai.com/blog/list-of-medical-insurance-companies-in-dubai?hsLang=en-gb) *Damodhar Mata | Your Trusted Financial Advisor in Dubai* ![Damodhar Mata-7-2](https://www.financialplanningindubai.com/hs-fs/hubfs/Damodhar%20Mata-7-2.png?width=119&height=119&name=Damodhar%20Mata-7-2.png) *I can help you grow wealth, gain passive income, and achieve your goals faster and with ease. * **Top Pages** - [Home page](https://www.financialplanningindubai.com) - [Best Life Insurance](https://www.financialplanningindubai.com/best-life-insurance-dubai) - [Best Investment Plan](https://www.financialplanningindubai.com/blog/how-to-invest-in-uae) - [Retirement Planning in the UAE](https://www.financialplanningindubai.com/retirement-planning-in-uae) - [FIRE Early Retirement Guide](https://www.financialplanningindubai.com/blog/early-retirement-in-uae-fire-guide) - [Best Child Education Plan](https://www.financialplanningindubai.com/childrens-education-planning) **Top Blog Posts** - [Financial Planner or Financial Advisor?](https://www.financialplanningindubai.com/blog/financial-planner-or-financial-advisor) - [How to find the Best Financial Advisor](https://www.financialplanningindubai.com/blog/best-financial-advisor-uae) - [Win With Money Challenge](https://www.financialplanningindubai.com/blog/30-days-win-with-money-challenge) - [FIRE guide for expats](https://www.financialplanningindubai.com/blog/early-retirement-in-uae-fire-guide) - [Pay Yourself First](https://www.financialplanningindubai.com/blog/how-expats-in-uae-can-grow-wealth-using-pay-yourself-first-strategy) - [Google Reviews](https://www.financialplanningindubai.com/testimonials-financial-advisor-in-dubai) **Other pages** - [About us](https://www.financialplanningindubai.com/about-us) - [Testimonials](https://www.financialplanningindubai.com/testimonials-financial-advisor-in-dubai) - [Services](https://www.financialplanningindubai.com/services) - [Contact us](https://www.financialplanningindubai.com/contact-us) --- © 2024 Financial Planning in Dubai. All rights reserved. [Follow us on Facebook](https://www.facebook.com/finplandubai/) [Follow us on LinkedIn](https://www.linkedin.com/in/damodhar/) [Follow us on YouTube](https://www.youtube.com/@mytwofils) [Follow us on Instagram](https://www.instagram.com/moneymatadubai) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Damodhar Mata", "url" : "https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata" }, "dateModified" : "2021-12-09T15:41:14.192Z", "datePublished" : "2014-01-04T08:12:57.000Z", "headline" : "Business Credit Insurance in Dubai - Explained with Video", "image" : [ "https://www.financialplanningindubai.com/hubfs/Imported_Blog_Media/id-10097442-1.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.financialplanningindubai.com/blog/business-credit-insurance-dubai", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.financialplanningindubai.com/hubfs/Financial%20Planning%20in%20Dubai%20Logo_9090-2.png" }, "name" : "Financial Planning in Dubai" } } ``` ```json { "@context" : "https://schema.org", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "UAE", "addressLocality" : "Emaar Square, Burj Downtown, Dubai,", "addressRegion" : "Emaar Square", "postalCode" : "124422", "streetAddress" : "Building No 1, 4th floor" }, "alternateName" : "Financial Planning in Dubai | Independent Financial Planner", "logo" : "https://www.financialplanningindubai.com/hs-fs/hubfs/New_logo.png?width=100&name=New_logo.png", "name" : "Financial Planning in Dubai | Independent Financial Planner", "sameAs" : [ "https://www.linkedin.com/in/damodhar/", "https://www.facebook.com/finplandubai", "https://twitter.com/finplandubai", "https://www.instagram.com/moneymatadubai/", "https://www.youtube.com/channel/UC-Zc9NxnCZDw0j_HkTerMWw/videos", "https://in.pinterest.com/finplandubai/" ], "url" : "https://www.financialplanningindubai.com/home01" } ```