Trade credit insurance protects your business against both commercial and political risks that are beyond your control. It improves the quality of your bottom line and helps you to grow profitably, minimizing the risk of sudden or unexpected customer insolvency. Credit insurance gives you the confidence to extend credit to new customers and improve access to funding, often at more competitive rates. Trade credit insurance is for short-term account receivables -i.e., those due within 12 months.
Credit insurance protects your company against the failure of your customer to pay their trade credit debts owed to you. These debts can arise because of that customer becoming insolvent or failing to pay within agreed terms and conditions (i.e.,"protracted default").
Credit insurance does more than just ensure that your invoices are paid. It can help your business succeed by providing the following benefits:
Safer business growth
Credit insurance gives you the confidence to expand your sales to new and existing customers and markets. It also enables you to sell on open account terms, which can be a major competitive advantage, especially for exporters.
Thorough customer insights
Our knowledge helps you pick the right customers and make the best decisions for your business. We tell you everything you need to know about your current as well as potential customers and your marketplace so that you grow with confidence. Our risk information database is a valuable support to your in-house credit management.
Optimized risk management
With a credit insurance policy, you can better control and protect against bad-debt losses. You can minimize your risk when exploring and developing new markets. Credit insurance also reassures you that your invoices will be paid even if your customers default, which is critical to protecting your cash flow.
Better borrowing and financing options
Your business can secure better borrowing terms with the security that credit insurance provides. In some cases, to qualify for a loan,your bank or lender may actually require you to provide credit insurance.
In connection with public works' tenders, as security that the work is awarded toyou as the contractor and that you will actually sign the contract and undertake to perform the work as contracted.
Advance payment bonds
As security for the repayment of advance payments or payments made on the account.
Supply and service bonds
As security for the obligation, which you have taken on as a contractor to supply goods and services up to the point when the object is handed over or accepted.
To secure the supply of goods and the performance of services with or without a warranty period. They also trigger the repayment of warranty retention money, thus providing immediate liquidity to you as the contractor.
As security for any defects discovered during the warranty period. They also trigger the repayment of warranty retention money, thus providing immediate liquidity to you as the contractor.