Trade Credit Insurance:
Protect Your Business Against Customer Non-Payment
Trade Credit Insurance is a vital safety net for businesses that offer goods or services on credit terms. It protects your company from financial losses due to customer insolvency or default payments, allowing you to sell with confidence, whether you’re trading domestically or internationally.
Is Trade Credit Insurance Right for Your Business?
You should consider this coverage if your business:
- Operates on a B2B (business-to-business)
- Offers credit terms to customers.
- Relies heavily on a few key buyers.
- Plans to expand into new markets.
- Wants to reduce the risk of bad debt.
- Has experienced customer payment issues in the past.
- Seeks more time to focus on business growth, not collections.
How Does Trade Credit Insurance Work?
Coverage Scope
- Covers non-payment due to insolvency or default payment.
- Applicable to both domestic and export markets.
Buyer Assessment
- The insurer evaluates the creditworthiness of your customers.
- A credit limit is granted to each approved customer..
Claim Process
- If a covered buyer fails to pay due to default payment and insolvency, you can file a claim.
- The insurer pays a percentage of the outstanding invoice (based on policy terms and conditions).
- A waiting period is applied.
- The insurer also assists with the debt recovery process.
The Reasons Why You Should Take Out Trade Credit Insurance
Protection
Mitigate the risk of losses caused by default payment and Insolvency.
Growth
Offer credit terms to customers while you grow your business safely.
New Market Expansion
Safely expand your operations.
Early Risk Alerts
Monitor customers’ payment habits and be notified of any decline.
Speed
Respond more quickly to business opportunities with instant access to up-to-date business intelligence.
Cost Effectiveness
Enjoy added-value services such as debt collections and credit reports.
Related News
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This information is provided for reference only. For complete details regarding benefits, terms, and exclusions, please refer to the policy contract. The information here serves as a brief summary for quick and easy access. The exact terms and conditions that apply are stated in the policy contract.