Credit insurance or trade credit insurance is designed to protect one your companys largest assets; trade debtors.
If your customers fail to pay due to insolvency, protracted payment, or an adverse political event, your cash flow will not suffer. We can arrange all policy types including:
The highly experienced credit team at our sister company, S-Tech, brings value by understanding the diversity of options available from today’s credit market whilst recognising that your business is unique. We understand that you will need cover correctly tailored to meet your individual needs.
Since partnering with S-Tech over 10 years ago, we have received excellent account management with a proactive approach using intuitive knowledge of our business.
Credit insurance protects your business from financial loss incurred through a customer’s non-payment or insolvency. It can also cover disputed debts and losses caused by political events around the world.
Credit insurance is available across all trade sectors and typically pays out 90% of lost revenue, provided you hold an insured limit from the underwriter. Options are available to cover one customer, all your customers, or any multiple inbetween.
Credit insurance helps add discipline, structure, and control to your credit management process. Here are some of the key benefits of having credit insurance in place:
No. Credit insurance is not legally required – but it makes business sense as approx. 30% of all business assets are tied up in credit.
Credit insurance protects your company against the failure of your customers to pay trade credit debts owed to you. These debts can arise following a customer becoming insolvent or failing to pay within the agreed terms and conditions. You can find out more of what credit insurance is and why you would need it in our latest article
There is no difference between credit insurance and trade credit insurance because they are the same thing, just named differently.
A few different terminologies exist for this insurance product such as: trade credit insurance, business credit insurance, export credit insurance, or credit insurance. These are all an insurance policy to protect business accounts from loss due to credit risks such as protracted default, insolvency, or bankruptcy.
A large number of credit insurance policies are written on this basis, particularly in the SME and mid-market arenas. This means you provide the insurer with a forecast of your annual turnover but you can exclude customers where you get paid before the goods are despatched or the customer is not a credit risk such as government bodies.
This type of policy is suitable for a company that has a large or excessive exposure to a single company or group of companies. Specific account cover is protection that looks after one-off larger contracts, or the debt owed by one of a company’s largest customers.
Credit insurance will protect against the insolvency of/refusal to pay by your customers. Our scheme policy is aimed at companies in the agricultural and horticultural industries, including those trading in fresh produce, herbs, flowers, dairy products, and livestock, among others.
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