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Trade credit insurance is an insurance policy and a risk management product which protects accounts receivables from loss due to credit risks such as protracted default (the non-payment of an account after a specified period of time), insolvency or bankruptcy.

Trade credit insurance provides companies with the protection they need as their customer base consolidates creating larger receivables to fewer customers. This further creates a larger exposure and greater risk if a customer does not pay their accounts.

Very few companies know that insurance can safeguard this crucial asset and prevent unpredictable losses.

Benefits of trade credit insurance include:

  • Protects balance sheet assets
  • Propels revenue growth by mitigating the related customer non-payment risk.
  • Used as a financial tool. A trade credit Insurance policy may unlock additional financial flexibility on a bank line and potentially support innovative working capital solutions.

A clunky, ill-fitting trade credit policy will not benefit your business—make sure to secure tailored coverage that fits your business’ needs. Trade credit insurance is a small, specialized field that requires careful risk assessment. A precise assessment will create an effective insurance policy that keeps you above water if your customers or contractors go under. Request a quote today for more information about how credit insurance can protect your business.