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Green Working Capital Insurance

Green Working Capital Insurance

Green Working Capital Insurance
Short-term (up to 2 years); Medium-Long term (up to 7 years)

Lend with confidence to exporters supporting green investments.


Etihad Credit Insurance (ECI) can support the bank loans you need to finance working capital for your green projects. Our Green Working Capital Insurance protects your loan against payment default, making it easier for you to access the financing you need.

Who is it for?

Export businesses
Export businesses

Export businesses who are engaged in trade, sales, or investments that help mitigate or adapt to climate change and need loans from banks for working capital. ECI’s Green Working Capital Insurance makes it easy for banks to grant working capital loans for your green export business.

UAE Banks
UAE Banks

ECI’s Green Working Capital Insurance makes it easy for banks to grant working capital loans for your green export business.

Key Benefits

Make it easy for your bank to grant you a loan.
Make it easy for your bank to grant you a loan.

Etihad Credit Insurance (ECI)’s Green Working Capital Insurance reduces the risk of lending to a new client. Providing a working capital loan to your green business becomes an easy and smart decision for your bank.

Protect your loan collateral.
Protect your loan collateral.

Etihad Credit Insurance (ECI)’s Green Working Capital Insurance protects your bank in case you default on your loan. The claim is usually paid out before other capital can be activated.

Provide additional appealing collateral to your bank.
Provide additional appealing collateral to your bank.

Etihad Credit Insurance (ECI)’s Green Working Capital Insurance acts as additional collateral toward your loan. It is appealing to banks because its value is transparent and can be realized at short notice if needed.

Take advantage of our AA- Fitch rating.
Take advantage of our AA- Fitch rating.

Etihad Credit Insurance (ECI) is an AA- rated institution that allows our solutions to provide excellent support. Banks can significantly reduce the capital they must allocate to an asset.

Make supporting green projects easy for your bank.
Make supporting green projects easy for your bank.

By providing a loan to your green export business, the bank can report positive initiatives that support Sustainable Developmental Goals (SDGs) in its annual report. ECI’s Green Working Capital Insurance incentivizes your bank to support these initiatives by working with you.

Product Features at a Glance

Eligibility criteria:
Open for all banks based in the UAE.
Payment terms:
Up to 7 years
Risks covered:
Non-payment 6 months after due date, due to inability or unwillingness to pay by the borrower.
Coverage:
Up to 95% of the principal debt; the policy can specify exclusions to the cover and deductibles.
Tenure:
Policy period will match payment terms. A percentage of the risk premium the bank charges. For high eligibility related to climate action, ECI can further reduce the premium. Estimate your premium here.
Premium:
A percentage of the risk premium the bank charges. For high eligibility related to climate action, ECI can further reduce the premium.
Overdue notification:
The policy will state at what point the bank will report that a client is late with payments. This triggers a debt collection period.

How It Works

Step-by-step Guide

1
Information Gathering

The lending bank will contact ECI with general information about the loan it wants to insure. Loans that have already been disbursed are not eligible for insurance.

2
Initial Quotation

Once it is determined that the loan can be insured, ECI will prepare an initial, non-binding quotation. Also included will be an overview of the information needed for ECI to make a thorough assessment to provide a binding proposal. The documentation will provide evidence of the relationship between the purchase funded with the loan and future exports by your company and ECI will also include an assessment in regard to green investments and operations.

3
Thorough Assessment

Once all the information is provided, ECI will conduct a thorough assessment of your export business and the green transaction. At this stage, the underwriter will work with the bank to discuss details of the cover, policy wording, risks, and mitigation approaches. ECI uses accepted international standards and methods for the assessment of the green contribution of the transaction.

4
Policy Agreement and Loan Disbursement

Once internal and external approvals are given for the terms and conditions and the bank signs the policy, the loan can be disbursed. ECI will only be involved in case of payment default or indications of payment problems.

Get an instant premium estimate

Credit insurance is crucial for safeguarding your business transactions, especially when customers default on payments. Understanding the cost of this protection is vital for strategic planning. ECI offers a quick and easy way to calculate the annual cost of trade credit insurance tailored for your business.

Find your cost estimate quickly and easily here!

Simplified Claims Journey
Simplified Claims Journey
Step 1
Default Notification
Default Notification

The bank will notify ECI as soon as it becomes aware that there may be a potential payment problem. Notification is mandatory 30 days after default on the scheduled due date.

Step 2
Recovery Effort
Recovery Effort

ECI will work together with the bank to agree on the best way to manage recovery. Amicable resolution of payment delays, assistance from a specialized agency, or initiating formal litigation may be used to recover payment.

Step 3
Claim Submission
Claim Submission

Once it is determined that not all payments can be recovered, the bank can submit a claim along with evidence of loss and policy compliance.

Step 4
Swift Evaluation
Swift Evaluation

ECI will assess the claim diligently ensuring transparency and adherence to policy. The claim assessment can take up to one month.

Step 5
Clearance for Payment
Clearance for Payment

After the assessment is complete, ECI will send details of the calculation for approval and sign-off. The claim will be promptly paid out.

Step 6
Post-Claim Recovery Journey
Post-Claim Recovery Journey

If there are still chances of potential recoveries, ECI will work in collaboration with the bank for additional recovery efforts. Any recoveries will be shared between the bank and ECI as per the policy agreement.

Get started with boosting your bottom line and trading with confidence today!

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