Trade Credit Insurance
All businesses supplying goods and services on credit terms face the risks associated with bad debts. No matter how successful, every business must consider what would happen if a major customer or a series of customers failed paying their debts.
There are a variety of reasons why your customers may default on their repayments. These include:
– Protracted Default
– Contract repudiation
– Natural Disasters
– Political Interference
– Currency Exchange collapse
– Dissatisfaction with your service / goods
Trade Credit Insurance will provide the peace of mind you are looking for.
Trade Credit Insurance is the protection of receivables against loss due to the insolvency or default by trade debtors in Australia and/or overseas.
Cover can be arranged to suit a wide range of circumstances including:
- Whole Turnover – covering your total receivables ledger, the most widely used form of protection
- Major Debtors – covering your major accounts, over an agreed dollar value, Appropriate where you have a high concentration of risk at the top end of your ledger
- Single Risks – covering a single large or strategic exposure, There may be instances where it is necessary to insure a specific contract or customer
Trade Credit Insurance can provide you with the following benefits:
- Helps protect the bottom line of your business
- Provides a high level of cash flow certainty
- Improves your overall credit control processes
- Access to independent credit risk assessments
- Increased sales by increasing credit risk exposure to specific customers
- Provides additional security for your bank or other lending institutions