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As the situation in Ukraine evolves, businesses should be mindful of potential risks to their people, assets, operations, or supply chains in the region and globally. Marsh, as part of the Marsh McLennan family of companies, has created a page with information, tools, and resources related to the Russia-Ukraine conflict. Please visit the page for the latest information.

Trade Credit and Political Risk

When your firm operates in the realm of fast-moving global trade, every day presents both opportunity and challenge.

Our Trade Credit Practice delivers solutions to help manage the risks of receivables and a wide range of other trade finance issues—regardless of the day’s headlines.

Benefits of Trade Credit and Political Risk

Both public and private companies can benefit from trade insurance—organizations who have their growth focused on a small number of accounts, those who wish to insure a key account, business concerned with potential bankruptcy, or even those that need to reduce bad debt risk.

  • Catastrophic risk protection—prevents loss of assets, reduces risk of key account concentration, and caps exposure to bad debt loss
  • Sales expansion—affords the ability to expand into new/riskier markets, realize more organic growth, and enhance customer relationships
  • General loss protection—support credit risk evaluation, structure credit decision making, gain leverage with problem accounts, and enhance credit quality
  • Bank financing—more working capital/reduced rates, reduce inherent risk, reduce risk of key accounts, and include export receivables
  • Reduction of bad debt reserves—free up working capital


Trade Credit and Political Risk Coverage

Protecting a company’s commercial accounts receivables from unexpected and catastrophic losses, trade credit insurance has gained tremendous momentum.

Commercial Risks

Claim triggers include insolvency (Chapter 7 or Chapter 11 bankruptcy), and protracted default-non-payment within a specified time after due date.

Political risks

This includes transfer risk (political/economic events preventing or delaying transfer of payments), government moratorium (government decision preventing release of funds), contract frustration (decision preventing performance of the contract), and civil turmoil (insurrection, war, and natural disasters).

Meet a trade credit and political risk specialist.

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