Trade Credit

What is Trade Credit?

  • 40+ year provider of customized non-cancelable limits coverage, credit management tools and debt collection services for mid-market businesses, large corporations, multinationals and financial institutions.
  • Minimum premium of $20,000 and sales of at least $10M for corporate clients.
  • Domestic and foreign accounts receivable can be insured under a simple, comprehensive policy.
  • Structures generally include risk sharing in the form of co-insurance and/or deductible.
  • Non-payment coverage available for short-term trade related receivables, payables, loans and letters of credit is financed by established trade finance banks and alternative lenders.

The AIG Advantage

Coverage Flexibility

  • Flexible program structures provide a high level of autonomy when granting credit to customers. 
  • Coverage is tailored for an insured’s entire accounts receivable portfolio; can be just the largest exposures or a single account.  
  • AIG’s coverage flexibility can facilitate more attractive bank financing to increase working capital available from the same pool of receivables.

Claims

  • Highly-experienced and industry-leading global claims team.
  • Over $2B in global claims paid over our 40+ year history.

Multinational

  • One of the broadest networks among non-cancelable limit credit insurance carriers licensed in 70+ countries; supported by AIG Multinational tools and services.
  • Global accounts receivable insurance with local policy issuance for foreign subsidiaries wrapped by a controlled master program.

Why AIG

Problem Solvers

Challenge: A communications client that provides products and services sought a broader solution providing non-cancellable limits Trade Credit coverage, as opposed to another current carrier’s policy.

Solution: AIG worked closely with the broker  to understand the client’s needs and  provide a better structure for the client  with non-cancelable limits.

Benefit: By partnering with AIG’s Trade Credit team, the client obtained the more flexible, comprehensive policy.

Creative Solutions

Challenge: A banking client sought a Trade Credit policy to sit excess above its participation in a syndicate Trade Finance agreement and their primary policy.

Solution: With sound knowledge of this Trade Finance arrangement from another participating bank, AIG quickly stepped up with manuscripted coverage and bound the coverage.

Benefit: The client obtained the desired coverage and was appreciative of AIG’s ability to respond promptly through our experienced team’s understanding of this risk.

Claims Expertise

Challenge: A storied luxury retailer filed for Chapter 11 bankruptcy due to  pressures from online retailers, leaving its suppliers with millions in unpaid invoices.

Solutions: AIG’s client claimed the unpaid invoices under its Trade Credit policy and received a seven figure claim check.

Benefit: AIG’s client was able to continue operations as normal and meet its obligations to clients and lenders.

National Leadership

Brad Hébert

Head of North America, Trade Credit

Craig Bergmann

Head of Middle Market, Trade Credit, North America

Larry Sesmer

Head of Trade Finance, North America

Downloadable Materials