Trade credit insurance is an insurance product that assists businesses in protecting their cashflow and debtor’s book, against the risk of non-payment by their customers.
In international and domestic trade scenarios, where companies extend credit terms to their buyers, there is always a chance of commercial or political risks leading to payment defaults. Trade credit insurance provides a safety net to mitigate these risks, ensuring a business will be compensated in the event of customer insolvency, business rescue, or protracted default. Trade credit insurance enables companies to explore new markets confidently, expand sales on credit, and enhance cash flow management, as it offers protection against potential losses from bad debts.
Benefits of Trade Credit Insurance
The benefits of trade credit insurance to a business are extensive, providing several key advantages:
- Protect the debtor's book:Ensures that your accounts receivables are safeguarded against the risk of non-payment.
- Reduce the impact of bad debt:Minimises financial losses from bad debt, protecting your bottom line.
- Gain market insight:Provides valuable market insights from the insurer, helping you make informed business decisions.
- Reduce delinquent debtors:Helps in reducing the number of delinquent debtors by providing the option for better payment terms, and improved credit management.
- Protect cash flow:Maintains healthy cash flow by ensuring timely payments, and covering outstanding debt.
- Collection of overdue accounts:Assists in the collection of overdue accounts, allowing you to focus on your business’ growth rather than chasing delinquent debtors.
- Payment of valid claims:Ensures that valid claims are paid promptly, providing financial stability and peace of mind.
Maximising Your Cover
At Edge Risk Partners, we assist our clients in maximising the value they derive from their existing and new policies. We support our clients in remaining compliant with the terms and conditions of their policies, ensuring that the insurer assesses and pays claims fairly and on time.
Why Choose Edge Risk Partners?
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