SME Banking

Credit Protection

While you focus on the strategy and operation of your company, MCB gives you peace of mind when exporting your goods and services by providing cover on your accounts receivable through Credit Protection.

What are the characteristics of the Credit Protection scheme?

  • Reduces clients’ exposure on buyers who fail to pay for the products and services they buy. 
  • Provides information on buyers' credit worthiness and solvency. 
  • Helps to mitigate risk of bad debts and therefore minimise the charge for bad debts. 
  • Looks after your largest asset – your accounts receivable. 
  • Enhances your control on your business. 

Why Credit Protection?

If you agree with one of the statements below, then you should consider joining the scheme: 
  • Over the recent years there has been an increasing tendency to shift to Open A/C terms. 
  • If you are working on small profit margins, one bad debt can wipe out months, or even years of work. 
  • You never know what awaits you around the corner, even if you are trading with your "Blue Chip" customers. 
  • One of your largest assets needs protection. 

How does it work?

For more flexibility, you shall use Credit Protection on a global basis (Tailor-Made Packages). 
Steps to benefits from Credit Protection:
  • Contact your Account Executive to obtain an Export Line.
  • Submit debtors list and their outstanding amounts (or a selection of your debtors list) 
  • Once approved , you will receive details of individual Cover Lines on your buyers. 
  • You can adjust these individuals Cover Lines on a regular basis, depending on the evolution of the outstanding debts due from the buyers and subject to approval by the underwriter. 
  • Discount your invoices at our Trade Finance Business Unit

Who can benefit from the Credit Protection Scheme?

From a start-up to a multi-national: 
  • Any export-oriented service provider. 
  • Any exporter of goods. 

What would you benefit from the Credit Protection Scheme?

  • Cover against insolvency or protracted default of your debtor.
  • Quick recovery of debts.
  • Standard indemnity up to 85% payable in case of non-payment (subject to terms and conditions being fully complied with). 

So much for … 

  • Debtor protection to our clients at extremely competitive rates.
  • Standard fee ranges from 0.1% to 0.5% of your annual turnover covered.
  • No minimum annual fee.