A major challenge for traders, merchants or global exporters in these times of sporadic geo-political tensions and macro-economic instability are the slow payments, debtor’s insolvencies and bankruptcies. This has led to the rising popularity of credit insurance across the global trade ecosystem. These credit insurance solution providers can protect companies from non-payment of commercial debts. The adoption rate has increased manyfold in developed and developing regions. The global credit insurance market is majorly supported by large enterprises and the credit insurance products and services are mostly designed for the global export segment. However, due to the COVID-19 pandemic, the trend has caught on in the domestic markets as well as among Small and Medium-sized enterprises.
Reports suggest that the global trade credit insurance market is projected to grow at a CAGR of 11.2 percent from 2024 to 2030. Another report predicts that by 2025, the size of this market will be close to USD 10.77 billion. Growing strategic initiatives, such as partnerships, collaborations, and acquisitions along with the rise of digital technology have bolstered the growth of this sector.
International Business Magazine has been looking out for the most efficient and cost-effective services that make financial transactions accessible, affordable and less risky for global business operators. Our research team has been at work for a list of nominees worthy of being called the Best Financial Solutions Provider, Italy 2024. Our winner for the title became quite obvious with SACE S.p.A. filing their nominations for the above title.
Securing Globalisation Aspirations
Founded in 1977, Servizi Assicurativi del Commercio Estero (SACE), an Italian insurance-financial group, is wholly owned by the Italian Ministry of Economy and Finance since March 2022. Since its establishment, SACE has been promoting Italian companies that are into exports and looking to grow in foreign markets. It supports banks that facilitate credit to these companies. The group is the most trusted name among global traders in Italy when it comes to liquidity and investments.
SACE S.p.A. specializes in insurance coverage for export credits for the sale of goods or services and for non-market risks. The group’s services are specifically designed for companies registered in Italy that export goods and services or carry out work abroad. They even consider their services for foreign companies that are affiliated with or controlled by Italian companies.
The Italian Export Credit agency is regulated by the European Union Legislation and by the OECD arrangement on officially supported export credits. SACE follows the principle of good practice agreed at the Berne Union, an association representing the main export credit and investment support providers. SACE is a member of the Italian delegation to the Paris Club for the restructuring of sovereign debts. It participates in some of the major negotiations related to international regulations on export credit, such as the OECD and the IWG.
Insuring a Steady Cash Flow
With 26 global offices, it is currently active across 193 countries worldwide and supports over 37,000 companies. With recent measures from the Italian government on the sustainability front, SACE is also supporting guarantees for green projects in the Italian Green New Deal framework.
SACE has developed the Buyer’s Credit facility that gives Italian and foreign companies access to international financing in hard currencies at competitive rates to purchase capital and quasi-capital goods and services from Italy. Similarly, companies can opt for its Push Strategy to obtain untied medium/long-term loans at competitive terms to increase the procurement of goods and services from Italy. SACE has earned its reputation across 200 countries for its efficiency in handling out-of-court and judicial activities and bankruptcy proceedings for the recovery of unpaid receivables. SACE is the most reliable financial institution in Italy for companies that seek additional financial resources to safely grow and expand into foreign markets.
The research team understands the role of the trade credit insurance industry in the global business ecosystem and companies like SACE S.p.A deserves to win the title of Best Financial Solutions Provider Italy 2024 for its contribution to boosting SMEs across the globe. Credit insurance companies like SACE have been a big support in maintaining a constant cash flow for not just large enterprises but also for small and medium enterprises.
Article by Ujal Nair
