Trade Credit Insurance protects companies against bad debt. A credit insurance policy gives you the confidence to offer terms to your customers while providing you security from a customer default or bankruptcy. Credit insurance should make you more competitive, improve your borrowing relationship with banks, and protect against non-payment risk including insolvency and slow pay.
What are the benefits of Trade Credit Insurance?
Protection from non-payment of receivables
- Increased competitiveness and sales by allowing you to extend your customers longer payment terms and higher credit limits
- Improve your ability to borrow using insured receivables
- Improves efficiencies in your credit department by providing information on customers and prospects
Provides protection on export sales where your knowledge of the customer base may not be as strong and your legal options in the event of non-payment may be limited.
Most banks will not lend against uninsured foreign receivables. Credit insurance allows banks to lend against foreign receivables as if they were domestic.
Many companies and banks are concerned when more than 25% of their business is with one customer. Credit insurance can help address that concern by protecting a company from a catastrophic loss.