What is Trade Credit Insurance?

All about trade credit insurance: Find out about trade credit insurance, how it works and how it can benefit your business

Trade credit insurance protects your business from bad debts.

It insures your accounts receivable and protects your business from unpaid invoices caused by customer bankruptcy, default, political risks, or other reasons agreed with your insurer. It is also known as debtor insurance, export credit insurance and accounts receivable insurance.

Benefits of trade credit insurance

Protecting your accounts receivable from potential bankruptcy is only part of the benefit this type of debtor insurance can provide. In addition to protecting your business from the risk of insolvency, it can help:

  • Grow your customer base as potential buyers may be attracted to your credit terms
  • Enhance trade providing you with the confidence to develop and expand your market
  • ¬†Supports cashflow enabling you to build strong relationships with your suppliers and employees
  • Safeguard customer relationships through improved communication and enhanced credit terms
  • Improve your access to finance and your relationship with your bank
  • Meet the risk management requirements of your stakeholders or board and provide peace of mind

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Benefits of a trade credit insurance policy: Learn about our five key benefits of taking out a credit insurance policy.

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All about credit risk: See how a good credit risk management strategy can protect your cash flow and support your business.

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Any combination of factors can lead to a business failing - here are our top ten warning signs to look for.

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