Trade Credit Insurance

If you’re concerned about bad debts holding your business back, you can use Trade Credit insurance to protect cash flow and receivables.

Over 70% of companies whose customers become insolvent get nothing by way of reclamations, meaning potentially damaging cashflow problems.

Trade Credit insurance enables credit terms to be offered to your business customers with confidence by insuring your trade receivables due within 12 months. If a customer fails to pay, whether it’s due to insolvency, refusal or an inability to pay under the terms of the contract, a Trade Credit insurance policy indemnifies your losses.

Trade Credit insurance helps businesses grow by safely offering credit to new and existing customers, bringing with it a range of commercial benefits.

Using this insurance policy enables you to reassess internal credit management procedures and take a structured approach to credit control procedures.

Banks and financiers are often more willing to provide trade finance, or may be prepared to offer more favourable lending terms, to businesses with a credit insurance policy.

You may be able to negotiate more favourable terms with your suppliers if they know the business they are trading with has taken steps to protect its assets and balance sheet.

Insurers have detailed knowledge of businesses and trade sectors which enables them to set appropriate credit limits. By following Insurers advice, you can review existing trading relationships and so reduce exposure to potential bad debt.