Trade credit insurance, also known as debtor insurance or accounts receivable insurance, is a risk management tool designed to protect businesses from the potential loss of income due to non-payment by customers.
Helping businesses trade smarter and grow stronger
It is especially valuable for companies that offer goods or services on credit terms, as it helps mitigate the financial impact of client defaults, bankruptcies, or payment delays.
Beyond just providing protection, trade credit insurance serves as a strategic enabler, allowing businesses to confidently extend credit to new customers and enter new markets.
What Trade Credit Insurance Covers
Trade credit insurance can be tailored to suit your business’s needs and can provide coverage for various scenarios, including:
Customer Insolvency
Protects against unpaid invoices when a customer enters liquidation, administration, or bankruptcy.
Payment Default
Covers losses if a customer fails to pay within agreed terms, even if they are still operational.
Political Risk (for exporters)
Safeguards against losses resulting from government actions, such as import/export bans, currency inconvertibility, or contract repudiation.
Selective or Whole Ledger Cover
You have the flexibility to insure your entire debtor portfolio or focus on specific high-risk clients or key accounts.
Credit Management Support
Some insurers offer added services such as credit checks, debtor alerts, and collection assistance to proactively manage risk.
Cover at a glance
Protection against customer insolvency and payment defaults
Cover for unpaid invoices and delayed receivables
Optional political risk protection for exporters
Support with debtor monitoring, credit checks, and collections
Flexible cover for selected accounts or full debtor portfolios
Tailored solutions for businesses offering goods or services on credit
Who needs it?
Trade credit insurance is particularly beneficial for businesses in the following sectors:
Wholesalers & Distributors
Companies that sell large volumes on credit to retailers or resellers.
Manufacturers & Exporters
Especially those entering new markets or engaging with international buyers.
Construction & Logistics Firms
Businesses with long payment cycles and high exposure to client insolvency risks.
Agricultural & Transport Businesses
Companies managing seasonal contracts or bulk orders.
Any Business Offering Credit Terms
If unpaid invoices could significantly impact your cash flow, trade credit insurance is worth considering.
