The Advance Payment insurance policy is issued to companies that are registered in Oman. The policyholder purchases the Advance Payment Insurance Policy, to insure the advance payments that the policyholder is carrying out, for both local and international suppliers.
The policy insures the commercial risks related to these types of transactions, namely protracted default and insolvency. This policy covers policyholders in the event of a supplier becoming insolvent before delivering on the commercial agreement, or if the supplier fails to refund the advance payment done by the policyholder after the supplier fails to meet the terms in the commercial agreement. In such cases, Credit Oman will indemnify the Policyholder for the advance payment(s) carried out to the Supplier in question.