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Trade Credit Insurance

Why do you need Trade Credit insurance?

Trade Credit insurance can protect your business against commercial bad debts.

If you trade or sell goods on a credit basis, you’re at risk of bad debt or nonpayment by customers. This can disrupt your cashflow and leave you out of
pocket. Trade credit insurance is important for protecting your income and business assets against potential customer failure. With the right cover, you can grow your business confidently, knowing you can be protected if things go wrong.

All registered businesses that sell goods and services on credit terms, such as 30 days to pay, should consider trade credit insurance. This includes businesses that trade domestically and internationally. Some trade credit insurance policies also offer the bonus of working with designated collection agencies to help you recover your debts – taking the pressure off this difficult and time-consuming process.

Who should consider Trade Credit Insurance?

  • Manufacturers and wholesalers: These businesses often have large volumes of inventory and rely on a steady cash flow to maintain operations

  • Exporters: Exporting goods or services to foreign markets can expose businesses to additional risks such as currency fluctuations, political instability, and changes in trade policies

  • Small and medium-sized businesses: SMEs often have limited financial resources and may be more vulnerable to the impacts of non-payment by customers.

  • Service providers: Businesses that provide services on credit, such as consulting firms or marketing agencies

What can it cover?

Credit management support:
This includes coverage for credit management support, including credit checks on potential customers, monitoring of existing customers’ creditworthiness, and assistance with debt collection.

Insolvency of a customer:
Can provide coverage for non-payment by a customer who becomes insolvent or goes bankrupt.

Protracted default:
This includes coverage for non-payment by a customer due to financial difficulty, which extends beyond the agreed payment terms.

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