Benefits

What is Trade Credit Insurance?

Trade Credit Insurance is a business resource that guarantees a policyholder will be paid for goods and services sold to its covered customers.

• In addition to protecting the bottom line against bad debt loss, Trade Credit Insurance can increase top line sales by facilitating expansion into new and unfamiliar markets by transferring credit risk to the insurance company, i.e. being able to sell the entire market comfortably rather than just the good risks and generating more sales by extending larger lines of credit to existing customers that they might not normally be offered.


• Insured receivables facilitate more favorable borrowing terms and costs.


• Trade Credit Insurance can serve as a valuable credit information source.


• Effect a reduction in loss reserves.