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State-Backed Credit Insurance

State-Backed Receivables Insurance (DDAS) is a product that provides coverage for SMEs’ trade receivables arising from domestic forward sales. It covers receivables that cannot be collected due to legal situations such as bankruptcy, composition, liquidation, and default of the insured buyers.

State-Backed Receivables Insurance products protect SMEs against commercial risks, enabling them to carry out and grow their businesses with confidence. In doing so, they help SMEs maintain financial stability by preventing unforeseen financial losses.

There are 3 product types:

The State-Backed Receivables Insurance Commercial Basic

Product is a trade receivables insurance policy that offers coverage based on the maximum indemnity amount requested by the SME, instead of turnover-based premium rates. It provides cost-effective premiums and coverage with predefined maximum limits for SMEs.

The State-Backed Receivables Insurance Commercial Standard

Product insures trade receivables of the SMEs from domestic forward sales that are not backed by any collateral. It provides coverage for unpaid receivables of the insured buyer as well as legal events such as bankruptcy, composition, liquidation, and default.

The State-Backed Receivables Insurance Financing

Product insures the risk of non-payment of domestic receivables that have been transferred by the SME to a bank or financial institution. With this product, insured receivables of the SME taken over by the bank or financial institution can be used by the SME to access financing. 

Eligibility Criteria

SMEs with domestic sales not exceeding 500,000,000 TRY in the last fiscal year, and that have been established for at least two years (or another legal entity holding the majority of their capital was established at least two years ago), are eligible for the State-Backed Receivables Insurance System. All SMEs meeting these conditions and the risk assessment criteria set by the Special Risks Management Center can insure their trade receivables under the State-Backed Receivables Insurance.

*The Center may increase this threshold by up to 50% for individual applications, if deemed necessary.

There are two types of coverage: Commercial Risk and Natural Disaster Risk.

Coverage
  • Sales for which a maturity date is specified in a sales contract or invoice between the insured and the buyer are covered.
  • Sales made to natural or legal person enterprises engaged in commercial activity and sales against open account, checks, and/or promissory notes of post-dated invoices can be insured. (The maturity date must be stated on the invoice.)
  • Sales invoiced or contracted in foreign currency are excluded; only sales in Turkish Lira are covered.
  • Sales to buyers other than public institutions and organizations, municipalities, chambers and stock exchanges, professional associations, associations, foundations, state economic enterprises, and individuals who are not merchants are covered.
    • Exclusions from Coverage
  • Sales made in cash, by credit card, or under bank guarantees (such as letters of guarantee, DDS, etc.)
  • Foreign sales, or sales with invoices or contracts indexed to foreign currency 
  • Sales to group companies
  • Sales to public institutions and organizations, municipalities, chambers and stock exchanges, professional associations, associations, foundations, state economic enterprises, and individuals who are not engaged in commercial activity

    • You can purchase your insurance through our nearest branch.

    State-Backed Receivable Insurance is provided by Türkiye Sigorta A.Ş.

    You can find detailed information about the general terms and conditions here.