Page 9 - Turkinsurance Digital Magazine

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51 percent of the 500 largest companies in Turkey benefit from trade credit insurance

Euler Hermes announced the olds. At 51 percent of those companies, amount and upper
results of “Trade Credit Risk collateral limit for customer credits are determined by Senior
Management” survey, which Manage-ment/CEO/Assistant General Managers. At 26 per-
was conducted by with the cent of those companies on the other hand, Finance/Credit
participation of the 500 big- departments are responsible for the same process.
gest companies in Turkey.
343 of 500 largest companies Euler Hermes is a business partner that guides and
in terms of turnover attended provides references
the survey and responded to
the questions. 51 percent of Ahmet Ali Bugay, CEO of Euler Hermes Turkey, stated that
the companies that attended economic uncertainties in-creased the need for protection.
the survey stated that they ‘‘One of the biggest risks caused in the global economy by
use trade credit insurance the Covid-19 pandemic is the inability to pay trade credits.
product. Despite being a new product in Turkey, trade credit insurance
has become a very attractive with the in-crease of uncertain-
According to a statement by ty,” he said.
Euler Hermes, 50 percent of
the companies that attended the survey left the management Underlining that they made a point of working with compa-
of trade credit risk to their Finance/Credit departments, while nies that add value to their markets, Bugay said: “As Euler
29 percent put the responsibility on the shoulders of Senior Hermes, we are the global leader of trade credit insur-ance
Manage-ment/CEO/Assistant General Managers. Letter of thanks to our capability of monitoring financial status of over
guarantee is the most popular prod-uct in managing the trade 100 million companies around the world, processing and ana-
credit risk with 38 percent of the attending companies using lyzing that data and putting this data intelligence in use to
it to manage their risks. On the other hand, customer checks offer services to our customers so that they can trade safely.
and collateral bills are the second most used product in the Our customers work with us not only to be compensated but
list. Other most preferred products include Direct Debiting also for intelligence about markets and buyers and for risk
with 28 percent, Sub-Customer Check with 27 percent and management. These features differentiate trade credit insur-
Trade Credit Insur-ance with 24 percent. Participants stated ance from other products. We help companies trade safely
that they preferred letter of guarantee most due to their trust with a total global coverage of ap-proximately 1 trillion EUR
in bank guarantees. on an annual basis. Our annual coverage in Turkey is near-
ly 3 billion EUR. Companies that insure their trade credits
44 percent of the companies responded “Yes” to the ques- can safely trade with their exist-ing customers, while find-
tion, “Do you take additional risks over financial collateral ing a chance to open to new markets and benefit from Euler
you have determined for a customer?” 70 percent of those Hermes as a business partner that provides references and
companies stated that they took an additional risk of 0 to 25 guides them along the way. As Euler Hermes, we prove our
percent on average. 21 percent of them stated that took an difference by not asking for any guarantees in ex-change for
additional risk of 25 to 50 percent, while 8.6 percent stated the coverage we provide. We do not impose any operational
that they took additional risks over 50 percent. burdens on our customers while helping them grow safely.
With our bond insurance, which is another strategic product
70 percent of the companies have approval processes for we offer to the market, we go beyond the traditional cov-
additional risk erage of let-ters of guarantee; and we offer companies new
additional capacities. Thanks to our credit rating confirmed
41 percent of 343 companies that attended Euler Hermes’s as ‘AA’ by S&P, we are considered as a strong guarantor for
survey this year stated that they did not require any collat- projects abroad or for transactions that require beneficiaries
erals for the first open account sales to existing or new cus- operating abroad to be provided with letter of guarantee.
tomers, while 50 percent of them said they would not sell
anything without getting any financial collaterals. “Moreover, we believe that trade credit insurance will be-
come even more popular in the coming term, due to the ex-
70 percent of the companies that take risks via open account traordinary uncertainty in global economy and new steps tak-
method had internal ap-proval processes for certain thresh- en in our market.”