Sberbank insurance, a Sberbank subsidiary, has rolled out corporate insurance policies for trade loans with the basic insured value of up to RUB 300 mn. The program is available to entities offering extended payment terms.

Companies offering trade loans improve their competitiveness and sales dramatically while also facing risks of payment delays or failures in extended payments. To mitigate the risks, companies may resort to securing their trade loans through bank guarantees, factoring tools, administrative and financial expenses, which may offset extended payments. A company may also rely on its risk management system or debt collection agencies, but these measures incur costs and do not guarantee the money will be paid back.

Trade loan insurance is a convenient and viable alternative to other instruments that secure loans. Apart from guaranteeing your losses will be compensated for, trade loan insurance allows you to reduce the level of loss provisioning. The insurer also undertakes the monitoring of current risks and detailed verification of buyers when setting borrowing limits, thereby optimizing the budget clients spend on their in-house risk management systems.

The trade loan insurance program will help businesses shield themselves against bad contractors and will cover the risks arising from outstanding balances. Amid a shortage of financial risk insurance capacity, we see that corporate customers are highly interested in this type of insurance. If the client needs a higher amount of coverage, we are ready to address this need individually. We plan to increase our client portfolio both through Sberbank partners and on the open market.

Denis Kuzavlev

Senior Managing Director, Director of Corporate Insurance Centre, Sberbank

In recent years, trade loan insurance has confidently secured its place among other loan risk mitigation tools, becoming part of the companies' receivables portfolio management. Our program is designed both for corporate clients in Russia and CIS, and for non-residents doing business in Russia. In addition to insuring the risks of delayed payments or bankruptcy of the counterparty, you can also insure bank guarantees in the amount of up to RUB 200 mn, which offers an additional protection against financial losses.

Vitaly Pavlovsky

Director, Corporate Insurance Directorate, Sberbank insurance

Trade loan insurance policies can be taken out from Sberbank insurance or Sberbank Insurance Broker. Policy price varies for each policy taker depending on their industry, geography of supplies, and other criteria.

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Sberbank of Russia published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 10:59:05 UTC.