Credit insurance protects a business against bad debts, whether it’s existing or new customers, suppliers or anyone else who owes you money. It’s vital when trade receivables can add up to as much as a third of total assets.
What’s covered?
Trade credit insurance protects your company against commercial and political risks beyond your control, helping the business grow profitably and confidently extend credit to new, unknown customers. It can include a portfolio of buyers and covers these essentials:
- Financial risks – Where a customer is unable to pay you what they owe
- Political risks – Where unexpected political situations prevent money being paid to you
- Pays an agreed percentage of an invoice or receivable that’s unpaid because of long term default, insolvency or bankruptcy