Our Solutions

Credit Risk Insurance

Imagine having the freedom to fearlessly expand your business into Africa or globally. ATIDI makes it all possible.

Whether you are a local African business hoping to seek your fortunes abroad or an international company with ambitions to enter African markets, ATIDI can help you achieve your goals. We offer flexible options that ensure you are covered and able to succeed.

Credit risk insurance is a risk mitigation tool that protects against payment default risks. The product replaces expensive collateral such as Letters of Credit that banks often require to secure a loan or a line of credit. ATIDI’s solution allows companies the freedom to offer better payment terms to their clients, to increase their cash flow and to be internationally competitive by operating on credit terms.

The following sub-products that are offered:

  1. Lenders all risk – insures bank facilities including: loans (also bank-to-bank), letters of credit (LCs), invoice discounting and factoring, bonds and bank guarantees provided by a bank to SME / corporate clients or to another bank.
  2. Bank master policy – covers a portfolio of small sized bank facilities including: loans, letters of credit (LCs), invoice discounting and bonds provided by a bank to corporate clients.
  3. Single obligor (SO) – insures the risk of default by one specific buyer, often restricted on one specific transaction. Occasionally, this policy is also used to insure a selected number of buyers.
  4. Whole turnover (WTO) – insures sales made by a corporate (in exceptional cases also a bank) to a portfolio of clients against losses arising from credit risks. Since a portfolio of clients is insured several parties are involved (one supplier and multiple buyers) and several transact.

For lenders, ATIDI offers protection against borrowers on default loans and other lending facilities, and it also includes political risk cover for cross-border transactions.

Risks Covered

  • A corporate buyer/borrower who refuses to pay or is unable to deliver due to insolvency;
  • A corporate buyer/borrower who fails to pay due to deteriorating financial circumstances;
  • A corporate buyer/borrower who extends your payment beyond the agreed credit period (protracted default).

Eligibility

For trade transactions, ATIDI is open to receiving enquiries for deals across Africa. We can also give preference to transactions where the buyer and seller are located in one of our African member countries.

For financing transactions, the same applies. However, ATIDI prefers deals where the lender, borrower or project is located in one of our African member countries.

Application

  1. Submit an insurance enquiry form
  2. Once the enquiry is approved, ATIDI issues a Non-Binding Indication (NBI)
  3. If the terms and conditions quoted on the NBI are acceptable to you, ATIDI will ask you to apply for insurance and supporting documents
  4. Once ATIDI receives all the relevant documents and the risk is approved, you will receive your policy

Project Samples

Risk Country: Nigeria

Sector: Financial & Insurance Activities
Project: Loan to refinance trade transactions
Financier: Mauritanian Bank
Cover: Credit Risk
Amount: USD50 million

Risk Country: Zambia

Sector: Manufacturing
Project: Investment in a soft drink manufacturing plant
Financier: International Bank
Cover: Credit Risk
Amount: USD50 million

Risk Countries: Kenya, DRC, Burundi, Moz., Zambia, Rwanda, France, Malawi, Tanzania, Ghana, Nigeria

Sector: Manufacturing
Project: Manufacture & supply of Pharmaceutical products
Financier: International Bank
Cover: Credit Risk
Amount: USD11 million

Risk Country: Côte d’Ivoire

Sector: Agriculture
Project: Supply of rice
Financier: International Conglomerate
Cover: Credit Risk
Amount: USD8 million

Risk Country: Angola

Sector: Infrastructure
Project: Reconstruction of the airport runway
Financier: International Bank
Cover: Credit Risk
Amount: USD82 million

Frequently Asked Questions

What is Credit Risk Insurance?

Credit risk insurance is a risk mitigation tool that protects against payment default risks. The product replaces expensive collateral such as Letters of Credit (LC) that banks often require to secure a loan or a line of credit. ATIDI’s solution allows companies the freedom to offer better payment terms to their clients, to increase their cash flow, and to be internationally competitive by operating on credit terms.

How do I know I need Credit Risk Insurance?

If you are new to the world of credit risk insurance, you may wish to consider ATIDI’s risk solutions if you answer yes to one of the following questions:

  • Have you ever experienced any losses due to bad debt?
  • Do you have any outstanding commercial debts that you cannot collect?
  • Do you need help to assess the financial status of your customers?
  • Do you regularly experience problems with cash flow?
  • Have any of your customers ever gone into bankruptcy?
  • Do you regularly sell or plan to sell to customers in foreign markets?
  • Do you plan to sell to new customers?
What are the benefits of Credit Risk Insurance?

ATIDI has built a track record of success for clients doing business worldwide who have come to rely on our global network of partners. Here are ten ways ATIDI’s Credit Risk Insurance solutions can help your business:

  • Expand into new markets
  • Make sound business decisions
  • Protect your company against disastrous losses
  • Collect debts more efficiently
  • Obtain a credit rating and protect your existing rating
  • Decrease expenses from your credit management administration
  • Avoid the cost and hassle of Letters of Credit (LCs)
  • Get a bank advance on your receivables
  • Increase your creditworthiness with your bank
  • For insurance companies, you can gain access to the reinsurance market
What does ATIDI cover?

ATIDI can insure your entire portfolio of buyers or debtors and we can also cover single buyers.

For lenders, ATIDI offers protection against borrowers’ default on loans and other lending facilities, and it also includes political risk cover for cross-border transactions.

ATIDI covers these specific risks:

  • A corporate buyer/borrower who refuses to pay or is unable to pay due to insolvency
  • A corporate buyer/borrower who fails to pay due to deteriorating financial circumstances
  • A corporate buyer/borrower who extends your payment beyond the agreed credit period (protracted default)
  • Public buyers (public institutions) can also be included