Credit insurance trade financing business refers to that after the seller insures credit insurance and transfers the compensation interest to the bank, the bank provides trade financing to the company. When a loss occurs within the scope of insurance liability, our company according to the \"debt transfer agreement\" It is stipulated that the compensation payable to the seller after the settlement of the insurance policy shall be directly paid to the financing bank's business in full.
The trade financing under our company’s credit insurance is different from the traditional mortgage, pledge and guaranteed loans in the past, but the introduction of \"credit loans\"The new concept. It uses the equity of the seller’s receivables as the financing basis. Through a comprehensive analysis of the solvency based on the seller’s financial strength and commercial credit, the company’s credit insurance will be insured by the seller. Under the premise that the compensation interest is transferred to the financing bank, the bank provides a credit loan for the sales company’s real sales behavior and the determined amount of accounts receivable. This new financing model has freed the sales company, especially the small and medium-sized enterprises, because The embarrassing situation of insufficient mortgage and guarantee capacity and inability to obtain bank financing has created favorable conditions for its expansion of business scale and competitiveness.
According to the different insurance targets of credit insurance, our company's products are divided into export credit insurance and domestic trade credit insurance, and our company's credit insurance financing business is also divided into export credit insurance financing and domestic trade credit insurance financing business.