HSBC Bank Middle East and Euler Hermes France-based credit insurer have teamed up to offer HSBC’s commercial banking customers a risk transfer solution for their outstanding commercial invoices. With Euler Hermes, credit insurance customers can now protect one of their account receivables.
The solution enables companies to continue to supply their clients on an open account basis with the confidence they will be paid. Credit insurance indemnifies companies against the non-payment of an open account trade. In addition, the insurance solution enables a company to select potential new buyers, offer open account payment terms and to extend credit to existing customers.
Euler Hermes, which operates under the sponsorship of Alliance Insurance PSC in the UAE, has established in the GCC a team of credit insurance specialists to advise clients on administering their credit insurance policy and also a credit underwriting team to support them on taking credit decisions for local and international companies.
Anil Berry, regional general manager for Euler Hermes in the Middle East, said: “Taking into account the current international economic crisis and the effect it is having on the ability for businesses to get paid, we believe it is our professional obligation to present businesses in the region with a financial tool, allowing them to insure the payment credit risk of their domestic and foreign customers.”
Simon Vaughan Johnson, regional head of commercial banking, HSBC Bank Middle East, said: “HSBC is the leading provider of international trade services in the region. The launch of credit insurance further enhances our range of trade solutions and enables our customers to achieve enhanced balance and risk management.”
