Expanding into Emerging New Markets

Emerging markets offer many opportunities for business growth, from untapped consumer bases to lower production costs and access to natural resources. But for all their potential, they also come with unique risks: political instability, limited credit information, and unpredictable payment behaviors.

That’s where trade credit insurance (TCI) comes in.

Companies that want to expand globally and sustainably should consider trade credit insurance as a strategic tool, not just a safety net.

Emerging markets can be highly rewarding, but they’re not without risk. Trade credit insurance helps businesses grow into these regions with greater confidence and financial security.

Let’s look at some of the factors.

Making Global Expansion Less Risky

One of the biggest hurdles in doing business abroad is credit uncertainty. In many emerging economies, reliable credit information can be difficult to obtain, and legal systems may offer limited recourse in the event of non-payment. Trade credit insurance helps bridge that gap by protecting your accounts receivable from losses due to customer default, insolvency, or political events like currency restrictions or import bans.

With Atradius, businesses gain access to in-depth country and customer risk assessments, helping them make smarter credit decisions from day one.

Unlocking Competitive Advantage

Expanding into a new market often means extending payment terms to win business. But without insurance, offering open credit terms can expose you to significant financial risk. With TCI in place, companies can offer more competitive terms without compromising their cash flow.

In some cases, companies can gain a foothold in new markets simply by being able to offer terms their competitors couldn’t match, usually with the backing of trade credit insurance.

Supporting Financing and Growth

Banks and lenders view trade credit insurance as a mark of financial prudence. Additionally, insured receivables can serve as collateral, easing access to working capital for global production and distribution.

It’s not just about risk protection; it’s also about enabling expansion. With insured receivables, companies often gain greater access to funding, which helps fuel their international growth strategies.

Navigating Political and Economic Volatility

Emerging markets can be particularly vulnerable to sudden changes, such as currency devaluation, civil unrest, or shifting trade policies. Trade credit insurance includes political risk coverage, which protects businesses from losses outside their customers’ control.

Atradius actively monitors these risks and works closely with policyholders to adapt quickly and mitigate losses.

A Trusted Partner in New Territory

Atradius trade credit insurance offers more than a policy. Moreover, it provides global insights, expert risk analysis, and debt collection.

TCI can help businesses succeed in unfamiliar territories, which includes guiding them through credit decisions, market entry strategies, and collections when needed.

For companies looking to tap into the growth potential of emerging markets, trade credit insurance offers the confidence to expand boldly—while managing the risks smartly. With Atradius as a partner, businesses can unlock new revenue streams and build resilient, global operations.

Connect with Atradius to learn how trade credit insurance can support your global growth strategy.

Get the Latest Trends & Insights

Be the first to know about economic and political changes affecting you and your customers’ business, delivered right to your inbox.

Sign Up