Short and middle term credit

Short term credit is credit that is given when selling consumer goods, raw materials, semi manufactured products and services. The term of credit, or payment term, is within 360 days and depends on the nature of the goods and what is common practice in the branch. For most goods like flowers, fruit and vegetables, fish and meat products a few weeks credit is the maximum. For capital goods longer credit terms are granted. In general those terms do not exceed 180 days after delivery of the goods.

For capital goods such as aeroplanes, payment terms of more than 360 days apply: middle term credit. In some cases this can be up to 10 years.

The risks Finance & Insurance is insuring involve the risks in transactions between companies. Credit terms to private persons are not insurable. The same goes for credit terms given to government institutions like counties and ministries and other institutions without corporate personality and separate property.