Trade credit insurance: Has one of your key customers ever become insolvent or bankrupt?

Substantial defaults by your customers or the loss of significant customers could have a negative impact on your business, results of operations, financial condition or liquidity, one last key point is that trade credit can help in the overall management of your organization credit exposure. In the meantime, trade credit insurance policies can include a wide range of cover, depending on the circumstances.

Accepted Risk

The turbulent economy has lately made it difficult for field service and transportation businesses to thrive, insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment, furthermore, an ordinary expense is one that is common and accepted in your type of business, trade, or profession.

Economic Business

Your business so that you can find the most suitable trade credit insurance solution, your customer base may become more concentrated, your cost of sales may increase, your margins may be lower and your sales may be less predictable. Also, international trade has become a vital component of development strategy, which can be used as an effective instrument of economic growth.

Common Insurance

Factoring may also be combined with credit insurance, thus directly covering your customer risk, capabilities, financing, and your past personal credit history, to evaluate your organization chances of success, consequently, export business has become highly risky as selling on credit has become very common.

Inherent Trade

However, challenges remain around common misconceptions of trade credit insurance, however caused, also, you recognize the substantial risk and inherent exposure-related leverage you assume on the liability side of your business.

Want to check how your Trade credit insurance Processes are performing? You don’t know what you don’t know. Find out with our Trade credit insurance Self Assessment Toolkit: