Demand for “Commercial Credit Insurance” has increased considerably driven by the changing commercial perspective in Turkey and around the world, increase of risks in trade and the launch of state supported commercial credit insurance. Having grown by 42 percent last year, commercial credit insurance will continue to grow during 2019, a year that is expected to be a significant one for global markets. 

Commercial credit insurance is a significant opportunity for SMEs

State supported commercial credit insurance which was launched in the beginning of 2019 by the Ministry of Treasury and Finance is an important application that will definitely relieve the markets. Thanks to this support, businesses with an annual indorsement lower than 25 million TL have gotten the chance to insure their future receivables from domestic sales. In this way, they can minimize the risk of negative impacts on their cash flow due to uncollectible receivables. 

Solutions based on the requirements of Turkish businesses

Taner Işık, General Manager of the Spanish company Atradius which is a company that offers commercial credit insurance products and collection services, comments as follows:  “During the first quarter of 2019, demand for commercial credit insurance has grown substantially. Companies that have the protection of commercial credit insurance can safely continue their commercial activities at times when the sales decrease, access to funds become relatively harder, and liquidity problems intensify. Commercial credit insurance helps companies and businesses protect their profitability in the long run. Therefore, we continue to work towards ensuring that more and more companies and businesses in Turkey effectively use commercial credit insurance, while offering them customized products that fit their requirements by analyzing their domestic and global requirements in detail. In a sense, we provide commercial consultancy services for companies wishing to gain customers in new markets. Commercial credit insurance is not only an insurance product, but also a product of risk management and sales support. As a result of all these efforts and the clear understanding that the product has several benefits for commercial activities, demand for commercial credit insurance has been growing increasingly with each passing day. As Atradius, we aim to increase awareness about risk management and grow safely together with our business partners. Atradius Turkey has grown by 61 percent at the end of April 2019, compared to the same period of previous year. Our goal is to continue supporting Turkish economy.”