Merchandise credit insurance is one kind of credit insurance which is effective in many sector. Credit insurance for domestic buyers and sellers is available in the many European countries. This insurance is sold only to wholesalers, manufacturers and certain service agencies, not to retailers. The policy is designed primarily to meet the needs of those sellers whose business is concentrated on a few buyers. The insurance is designed to enable the seller to recover a certain percentage of losses from insolvency of the debtor, but the contracts list a number of conditions under which the creditor may initiate a claim regardless of the question of insolvency. This kind of insurance is mostly useful to the manufacturers, wholesalers and agencies.