Trade Credit Insurance
What is it?
Trade Credit Insurance is a business insurance that protects your company against losses from the non-payment of commercial invoices. In a difficult economic climate Trade Credit Insurance provides you with the confidence of knowing that your trade receivables are protected against an unexpected bad debt.
How does it work?
The program gives you portfolio protection across the whole debtor ledger with credit limits for debtors assessed by the insurer based on available credit and financial information. A discretionary limit is allowed for smaller debtors.
Ultimately a Trade Credit Insurance policy will act as your final line of defence against bad debts, however through Reliance Trade Credit and Surety you will also get the following benefits
- Insurance - know your receivables are protected by an A+ rated Underwriter
- Cash flow - if a loss occurs you will have your cash flow promptly replaced with a 90% payment
- Balance sheet - a major bad debt will not have a destructive impact on your balance sheet
- Information - the underwriter employs a team of analysts to monitor key exposures and advise you if they see problems pending
- Security - the policy can be assigned to your bank as part of a security package
- Confidence - you can trade through a tougher economic cycle with confidence knowing the cover is there
- Legal expenses - all underwriters pay a share of legal expenses on insured accounts where collection action is required