Trade Credit Insurance

Why Trade Credit Insurance?

If you are a company selling products or services on credit terms or a financial institution financing those sales, you are providing trade credit. Trade credit can be extended on both domestic and international sales where nonpayment by your buyer is part of the risk of doing business. Trade Credit Insurance products protect you against that nonpayment risk.

Nonpayment can be caused by commercial or political events such as insolvency or protracted default. On international transactions, it can also result from the occurrence of disruptive political events such as wars, embargoes, or currency inconvertibility.

Products For Companies

Securitas Trade Credit & Political Risk offers a wide array of flexible coverages for companies. You can insure a broad multibuyer receivable portfolio, a smaller select receivable portfolio (key accounts), or a single buyer receivable. Specialty coverage products are also available for more unique contract structures.

Who Should Apply

Manufacturers, service providers, multinationals, and more. Our target customers for multibuyer policies are companies that have at least $20 million in insurable domestic sales or $7 million in international insurable sales.

Value-Added Benefits for Companies

Are you looking for sales expansion? Improve profitability? Or obtain better terms and borrowing capacity from your lenders? If so, Trade Credit Insurance can help you:

• Sales Expansion: Increase sales by allowing larger credit limits and more liberal payment terms
  • Enhance Asset Valuation: Get up to 90-95% coverage on your accounts receivable
  • Improve Profitability: Reduce earnings volatility related to bad debt expense
  • Increase Working Capital: Reduce bad debts reserves and transfer the amount to your working capital
  • Enter New Markets: Mitigate emerging market political risks on international sales
  • Credit Enhancement: Replace your buyer’s credit rating with “A+” rating of your insurer*
  • Access to Financing: Obtain better terms and borrowing capacity on your credit facilities from financial institutions by including export sales and alleviating buyer risk concentration issues.
  • Risk Transfer: Transfer nonpayment risk on your accounts receivable to the insurer
  • Second Opinion: Enhance your credit risk decisions with a valuable second opinion by experienced underwriters.

Eligible Goods and Services

Sales of all goods and services are eligible including any that are produced or performed abroad. This also includes insuring receivables arising from sales invoiced by foreign subsidiaries that are endorsed as additional named insureds on a policy.