Credit Insurance

Trade Credit Insurance Guide 

 

What is Credit Insurance?

Credit insurance is known by a variety of names including; trade credit insurance, bad debt insurance, debtor insurance, debtor protection, business credit insurance and export credit insurance, amongst other names. Credit insurance is purchased by businesses to protect themselves against the risk that a buyer defaults on a payment obligation due to a customer's insolvency, default or political causes. 
 
We know how important trade credit can be to your business, and how credit insurance can help your organisation flourish by protecting against the potentially disastrous effects of bad debts.
 
Our credit insurance policies enhance the security of your trade receivables and enable banks to lend you more, whilst enabling you to get the most out of invoice discounting bank facilities.
 
Whether you want to credit insure your entire customer base or have a single customer you’d like to insure, we create the right insurance programme to suit your needs.
 

Credit Insurance Solutions

We can arrange a number of different credit insurance policies and can tailor your cover to suit your needs as part of a bespoke solution. These policies can cover domestic and/or export credit and political risks cover.
 

Whole turnover cover

This protects your entire ledger.
 

Top trader cover

Cover that protects your largest outstanding debts, such as your top 10 customers by value.
 

Single risk cover

Insurance that covers specific accounts.
 

Catastrophe/excess of loss cover

This policy protects your business from larger losses.
 

Multinational credit insurance programmes

This policy protects your business throughout different countries.
 

SME designed policies

Specially formulated cover tailored for small and medium sized businesses.
 

Work in progress cover

Insurance that covers projects in progress, tailored to include pre-credit risks.
 

Supplier default protection

This insurance covers you against losses if one of your suppliers registers as bankrupt.
 

Benefits of Credit Insurance

The benefits to your business of purchasing credit insurance are:
 
  • Risk management and protection of your company's accounts receivables by compensating you in the event of non-payment
  • Protection of profit and cash flow
  • Competitive advantages including extended credit terms, higher credit limit values and expansion into new markets allowing your business to grow
  • Risk information and services when making commercial decisions
  • Access to financial and credit information of potential buyers
  • Enhancement of credit management processes due to increased cash flow
  • Increased bank security can make borrowings and finance more accessible 
  • Bad debt reserves may decrease
  • Options of longer payment terms
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