A recent announcement by the Export Credit Guarantee Corporation (ECGC) has set the stage for a revolution in trade financing in India. The ECGC has increased the trade credit insurance cover limit to 90% for exporters with a credit limit of up to INR 50 crore. This significant increase promises to boost the export sector. Exports are a key contributor to India’s economy, accounting for about 20% of the GDP.
Surety Seven: Leading the Charge in Trade Financing
Surety Seven, a trailblazer in the field of Trade Credit Insurance and Surety Bonds, is leading this transformation. The company is leveraging technology to offer innovative solutions that are reshaping the trade financing landscape in India.
The Power of Trade Credit Insurance
Trade Credit Insurance protects businesses from non-payment by their buyers, thereby reducing credit risks. It also provides working capital support, enabling businesses to access funds for operational requirements. The ECGC’s move to increase the insurance cover limit is a testament to the growing recognition of Trade Credit Insurance’s potential. This change is set to empower businesses to expand their customer base and engage in secure trade.
Surety Bonds: A New Era in Trade Financing
Surety Bonds, an alternative to traditional Letters of Credit (LCs), offer businesses increased flexibility and efficiency in trade financing. Unlike LCs, Surety Bonds provide a guarantee from an insurance company, freeing up capital for businesses. Surety Seven, with its digital-first approach, is at the forefront of enabling Surety Bonds in India. The company is using advanced technology to streamline the support for the process of obtaining Surety Bonds. Recently, at an event under G20 Summit titled “Implementation workshop for e-BGs and Insurance Surety Bonds” was held. Speaking at the event, Hon. Minister of Road Transport & Highways had remarked that
All Existing Bank Guarantees (& LCs) can be replaced with Insurance Surety BondsShri Nitin Gadkari, Hon. Minister of Road Trasport & Highways
Surety Seven’s Role in Revolutionizing Trade Financing
As the first company in India to offer Surety Bonds, Surety Seven is revolutionizing the trade financing landscape. The company’s innovative solutions and commitment to leveraging technology are providing businesses with a robust and cost-effective trade financing framework. Surety Seven also excels in underwriting Trade Credit Insurance in India. Its comprehensive solutions, including tech enables support for Trade Credit Insurance and Insurance Surety Bonds as a replacement for LCs, are empowering businesses to thrive in a dynamic and competitive marketplace.
The ECGC’s move to increase the insurance cover limit, coupled with the innovative solutions provided by Surety Seven, is ushering in a new era in trade financing in India. As more businesses recognize the benefits of Trade Credit Insurance and Surety Bonds, the landscape of trade financing in the country is set to undergo a remarkable transformation. This development promises to fuel economic growth and open new avenues for businesses to flourish. The Indian government has set a ambitious goal of achieving $2 trillion in exports by 2030. Such innovative solutions in trade financing are, thus, not just timely but essential.
Also Read – What is Surety Bond Insurance & Its benefits