Trade Credit

Protection against bad debt

Credit Insurance is the way to insure your success against customer insolvency and payment default. It is an integral part of modern business transactions.

If a business sells goods and services on credit terms, a substantial percentage of their working capital is probably tied up as money owed from their customers.  Trade Credit protects against these assets becoming bad debts.

Ever since business started offering credit terms, some debtors have failed to pay. Credit insurance is a first line of defence for your business - and more. It allows you to GROW.

Credit insurance gives you a head start over your competitors, guides you to profitable markets, protects your profits, improves your cash flow and allows you to offer more competitive payment terms.  In addition, trade financiers recognise the enhanced value of credit insurance on your debtor portfolio - this can improve your cost of borrowing. And, your peace of mind.

Why use credit insurance?

Credit insurance policies cover the risk of non-payment of trade receivables. That is, amounts owing to you arising from goods and services you have supplied. Standard cover is for insolvency and non-payment or payment default for domestic and/or export trade, but you can add protection for political risks and for work-in progress.

Using credit insurance, you can offer competitive payment terms and often operate higher credit exposures on your customers. This provides a platform to generate more sales without taking undue risk with your company’s balance sheet.