Medium Term Trade Credit Insurance

AIG’s Medium Term Trade Credit product provides protection for manufacturers and financial institutions against loss due to a customer or borrower’s non-payment for capital goods, machinery and related equipment sold on payment terms of up to five years.


  • Protects the insured’s balance sheet and extended cash flow against the risk of a customer default.
  • Allows capital goods manufacturers to increase sales in highly-competitive markets by offering better financing terms to strategic customers.
  • Facilitates attractive financing options for the buyer and seller.
  • Helps manufacturers establish a presence in new foreign markets to increase export sales.
  • Viable alternative to cash in advance, bonds or letters of credit.


  • Indemnifies the insured for loss caused by the failure of the obligor to pay the insured all or part of the financed value of the capital goods.
  • The policy period matches the repayment period, with the flexibility to attach coverage up to the obligor’s credit limit for all sales transacted within 12 months of policy inception.
  • Credit limits are non-cancellable for the life of the policy. Policies are typically “single-buyer”, written for a specific obligor, though multiple obligors may be included in one policy.
  • Premium is calculated using a rate applied to the amortizing balance of the financed value, and is usually payable in full at inception of the transaction.

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If you have any questions about Medium Term Trade Credit Insurance or any other trade credit insurance product, please contact us at

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