State Supported Trade Receivables Insurance
State-backed trade receivables insurance is a type of insurance used to prevent situations where SMEs are unable to collect their receivables and to cover their losses. This insurance entered into force after being published in the Official Gazette with the decision of the Council of Ministers in 2018.
Who can benefit from this insurance?
Businesses that meet the following conditions can benefit from state-sponsored trade receivables insurance:
- They must have been established at least two years ago.
- No tax and Social Security Institution (SSI) debts.
- Turnover must be less than 25 million TL per year.
- Meet the risk assessment criteria set by the Extraordinary Risk Management Center.
What is Trade Receivables Insurance?
Trade receivables insurance is a system that protects an enterprise’s trade receivables and the risk of not being able to collect its receivables. State-backed receivables insurance is also considered within this scope.
State-backed trade receivables insurance is an insurance product launched by the Ministry of Treasury and Finance in 2019. This insurance covers the risk of non-payment of receivables arising from forward sales. In the event that SMEs are unable to collect their receivables, a portion of their losses are covered by this insurance pool.
State Supported Receivables Insurance
Which Situations Does it Cover?
State-backed trade receivables insurance covers the following situations:
- Bankruptcy of the buyer company
- The buyer company declares concordat
- Liquidation of the buyer company
- Failure of the buyer to pay its term debts (default)
In these cases, SMEs can collect part of their receivables through this insurance.
What are the Benefits?
The benefits of government-backed trade receivables insurance can be as follows:
- Reduces the risks associated with forward sales to businesses.
- Regulates cash flow and provides financial stability.
- Makes business processes more efficient.
- Strengthens customer relationships and increases customer satisfaction.
- It brings new customers to businesses and contributes to growth.
- Premiums can be paid in installments.
- It helps you become more reliable in the eyes of financial institutios by increasing your creditworthiness.
State-backed trade receivables insurance is an important financial tool that helps SMEs minimize commercial risks. With this insurance, businesses can protect their receivables and feel more secure.
Bonus Calculation
If you would like to learn more about the State-Backed Trade Receivables Insurance and calculate the premium, please use the table below:
| VADELİ SATIŞLARDAN ELDE EDİLEN CİRO | 120 güne kadar vadeli satışlar için ORAN (%) | 180 güne kadar vadeli satışlar için ORAN (%) | 360 güne kadar vadeli satışlar için ORAN (%) | Azami Tazminat Tutarı | NET PRİMİN KATI |
| 0-3.000.000 TL | 0,50 | 0,80 | 1,40 | 30 | 30 |
| 3.000.001-5.000.000 TL | 0,45 | 0,70 | 1,23 | 30 | 30 |
| 5.000.001-10.000.000 TL | 0,42 | 0,60 | 1,05 | 30 | 30 |
| 10.000.001-15.000.000 TL | 0,40 | 0,50 | 0,88 | 30 | 30 |
| 15.000.001-20.000.000 TL | 0,35 | 0,45 | 0,79 | 30 | 30 |
| 20.000.001-25.000.000 TL | 0,32 | 0,40 | 0,70 | 30 | 30 |
This table shows the rates and maximum indemnity amounts that you can use for premium calculation of State-Backed Trade Receivables Insurance. You can calculate the appropriate premium rate according to your turnover range and term sales periods. For more information and applications, please contact the relevant authorities.
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