Trade Credit Insurance is designed to address one of the most significant risks for many businesses: the risk that your debts will not be paid.
Whether it is a single large loss or an accumulation of small losses, non-payment of invoices can have a big impact on your business’s liquidity and jeopardise your solvency.
The most common causes of trade credit risk are:
- Creditor insolvency (liquidation, receivership and bankruptcy)
- Protracted default (continued non-payment)
- Political risks in an overseas export market (e.g. contract frustration, export restriction, currency inconvertibility and expropriation)
When you protect your business against the risk of unpaid trade debts, you gain the benefits of:
- Protecting profit / shareholder equity
- Trading with confidence and sell into broader markets
- Access to independent credit risk assessment
- Improved credit management procedures
- Offering additional security to your own suppliers and financiers
We design trade credit risk management and insurance solutions to meet the needs of your individual business. We can structure an insurance solution that provides you with traditional whole of ledger cover, major debtor cover, specific debtor cover, catastrophe cover (aggregate first loss) or supplier default (anticipatory credit).
In addition, we can assist you with receivables finance and structured trade/finance.