Trade Credit Insurance provides indemnification for the non-payment of trade debts. Policies can be tailored according to a clients’ individual requirements, embracing not only insolvency risk on goods delivered, but also pre-delivery costs, the non-honouring of Letters of Credit, or non-delivery of pre-paid goods.
With Trade Credit Insurance in place, companies can generally extend more credit to customers whilst reducing the risk of non-payment, thereby enabling sales growth without a corresponding increase in risk.
Insurance can also enable a company to secure more favourable financing terms, as insured accounts receivable may be used as collateral. The combination of robust credit management policies and procedures with properly structured Trade Credit Insurance protection can lead to higher profit margins, an enhanced balance sheet and increased shareholder value.
Our team in Royal Associates Insurance Brokers has substantial experience in structuring, placement and servicing of Trade Credit Insurance programmes for companies covering a broad spectrum of industries.
