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Business insurance
Trade credit insurance
Trade credit insurance covers your losses if a debtor doesn’t pay you. It gives you stability through assurance of payment.
Any company that sells goods or provides services on credit terms is at risk of non-payment. Even companies with the soundest credit control processes are vulnerable.
Trade credit insurance is a practical solution for business owners, and will mitigate credit risk exposure.
Benefits of trade credit insurance
Trade credit insurance policies:
- help protect liquidity and cash flow
- transfer the risk of non-payment to an S&P “A-” rated or above credit insurance underwriter
- help you trade with confidence
- enhance the ability to offer competitive credit terms
- provide flexible coverage
- are tax deductible and available at competitive premiums
How trade credit insurance works
Trade credit insurance policies are generally flexible and allow a policyholder to cover all or part of their portfolio by choosing from:
- a business’s entire debtor ledger
- nominated debtors only
- domestic customers only
- overseas customers only.
Policies are usually written on a 12-month renewable basis but can be negotiated up to a 36-month tenure, covering goods and services delivered or dispatched to approved customers during the period.
To learn more about credit insurance and protection for your business risks, contact a broker.