Why take out a credit insurance policy: Learn about the benefits of credit insurance and how it can protect your business.
- To prevent bad trade debt by having buyers vetted by the credit insurer to assess if the buyer can pay on time each time a sale is made to them
- To enhance their credit control and cash flow positions. By insuring receivables against unexpected customer insolvencies and undue delays (protracted default) the trader gets relief from the risk of non-payment
- To be compensated for insured losses
- To obtain objective credit risk assessment on the buyer
- To sell more safely to new customers – local and export
- To expand sales to existing customers
- To develop a trusting business relationship
- If needed, to acquire additional working capital by using a trade credit insurance policy as collateral for its bank financing package