Certainty in an Uncertain World
In its simplest form, trade credit insurance will protect you and your business if your customers are unable or unwilling to pay for the work you carry out, yet many businesses are unaware of its existence.
There are many reasons why your customers may not pay, such as insolvency, lack of cash or delays in them receiving payment themselves. With that being said, it is a huge advantage to be able to put something in place that puts you in control. It is important to understand that trade credit insurance is not a ‘one size fits all’ solution, but a bespoke and personalised service tailored to your business.
Trade credit insurance enables you to do business in the knowledge that if your customers do not pay, you have a back-up plan.
Learn more about the benefits of having trade credit insurance and why forgoing it isn’t a risk worth taking. Read Whitepaper
More Than Financial Protection
Trade credit insurance allows you to implement plans with confidence, staying in control of the future of your business with peace of mind. Benefits include:
- It provides access to highly valuable reports about the credit worthiness of your customers, enabling more informed decision making.
- It provides sector insight.
- It offers an overview of activities within the marketplace.
- It can free up capital which can be used for growth.
Protect and Grow Your Business With Confidence
Trade credit insurance plays a crucial role in business growth. It mitigates the risks, supports expansion, safeguards cash flow, enhances your finance options and provides valuable market insights.
You can use it to empower your business to pursue new opportunities with confidence, fostering long-term success and stability.
Read our whitepaper to learn more about trade credit insurance’s role in business growth.
Who Needs Trade Credit Insurance?
We work with clients from a range of sectors, including manufacturing, food and beverage, construction, logistics, financial institutions, wholesale and retail.
However, Trade Credit Insurance is suitable for all businesses. Your business may need this cover for many different reasons, for example if you are experiencing growth, have previously incurred bad debts, are concerned about certain customers or an opportunity has arisen to increase your export capabilities.
Choice of Market
As Trade Credit Insurance Brokers, we approach the whole insurance market to give you a comparison of quotations from all insurers. Chartered and independent, our specialists will provide you with impartial advice and recommendations to secure the right policy for your business and its individual needs.
We work with you, offering day-to-day support and ongoing assistance to ensure your business is protected.
Fully Comprehensive
The most traditional policy that covers your whole customer base against loss, whether through insolvency or protracted default.
Selective Cover
It is now possible to insure only the customers identified as posing the greatest potential risk. A minimum of 5 buyers are required.
Single Buyer Cover
In some circumstances, you may only want to insure the customer whose default would have the greatest impact. This cover gives you the freedom to insure any single debtor of your choice.
Top-up Cover
If your existing insurer is unable to provide the level of cover you need, there are alternative options for top-up cover.
Frequently Asked Questions
Most insurers offer export cover, which may also include political risk.
Insurers will pay 90% of the debt.
If the debt is due to insolvency then payments are usually received within 14 days subject to all information being received. If the debt is due to a customer refusing to pay, then there is a waiting period which varies from one insurer to the next, but will be between three and six months.
The cost is a very small percentage of your credit sales turnover (typically less than 0.50% of your whole turnover). Premium is based on your credit sales turnover, the sector of your business, your customers and your previous bad debt history.
The cost of the insurance is paid directly to the insurer (monthly or quarterly) on an interest-free basis.
Surety Bonds
Most commonly used within the construction industry, bonds can often be required to help businesses secure work and are usually an undertaking by a bank or insurance company.
A surety bond is not a contract of insurance, but it does provide financial protection for the beneficiary against loss if the principal breaches contract and does not discharge damages.
