Trade Credit Insurance

Trade credit insurance provides cover for businesses if customers who owe money for products or services do not pay their debts, or pay them later than the payment terms dictate. It gives businesses the confidence to extend credit to new customers and improves access to funding, often at more competitive rates. Trade credit insurance is for products and services that are due within 12 months.

Throughout the lifetime of the policy, the trade credit insurer will inform the policyholder of any changes that might impact the financial health of their customers and their ability to pay them for goods or services delivered. They will then establish a plan with the policyholder to mitigate the risk.

The terms of cover may change over the lifetime of the policy to reflect the financial strength of any customer and it is the responsibility of the insurer to proactively monitor its policyholder’s customers, to ensure their continued creditworthiness.