Tired of Lending Limits? Credit Insurance Changes the Game

Growth kills cash. As your sales rise, so do unpaid invoices. And without fast payment, your borrowing power starts to shrink.

Over 80% of business failures stem from cash flow issues — often from delayed customer payments. (PNC)

Banks hesitate to lend when your receivables are risky. But there’s a fix: Trade credit insurance — a tool that protects your accounts receivable and makes them more attractive to lenders.

Explore our trade credit insurance solutions

Why Credit Insurance Unlocks Bigger Credit Lines

When you insure your receivables, lenders see less risk. That means:

More invoices become eligible for your borrowing base
Advance rates rise from 75% to 85–90%
Loan terms improve with lower rates and fewer covenants

As EXIM Bank notes, “lenders are often willing to lend against assets otherwise excluded from the borrowing base.”

You’re not just protecting your balance sheet — you’re unlocking trapped capital.

Understand how export credit insurance supports expansion

Real-World Results

Manufacturer Boosts Borrowing Base

A U.S. manufacturer hit a cap on its bank line due to one large customer and extended 60-day terms. Fix: They insured that buyer’s receivables. Result: The bank added those invoices back into the borrowing base — and increased the advance rate.

Cash unlocked. Orders funded. Risk mitigated.

Exporter Goes Global

A U.S. wholesaler couldn’t get financing for overseas receivables. The bank flagged them as too risky. Fix: We helped them secure EXIM-backed insurance for their foreign accounts. Result: A new export credit line, confident shipping, and a 20% jump in international sales.

Why Banks Love Insured A/R

Insured receivables are safer. If a buyer defaults, the insurer pays — usually up to 90%.

That transforms your A/R into a bankable asset:

Lenders count more of your sales
Advance at higher rates (up to 90%)
Offer more flexible loan terms

According to Allianz Trade, insured receivables often lead to “higher advance rates and expanded credit facilities.”

Banks win. You win.

Our insurance for lenders programs explain why this is standard practice.

Watch: Understanding Trade Credit Insurance

Benefits of Credit Insurance for Business Credit

Bigger credit lines: Insured A/R gets better treatment from lenders
Improved liquidity: Faster cash conversion from receivables
Sales confidence: Extend credit to new markets or buyers without fear
Better loan terms: Lower rates, looser covenants, higher limits
Bad debt protection: Avoid major write-offs and profit disruptions

Read our guide to trade credit insurance

Conclusion: The Smarter Way to Finance Growth

Trade credit insurance doesn’t just protect you — it unlocks capital, enhances your bankability, and gives you a strategic edge.

When your receivables are insured, lenders say “yes” more often. When risk is transferred, opportunity returns.

For manufacturers, wholesalers, exporters, and distributors, it’s one of the most underused financial tools for accelerating growth.

Frequently Asked Questions

Q: Can I insure export sales, or just domestic receivables? Yes. Trade credit insurance covers both. With policies backed by EXIM Bank, U.S. exporters get protection — and financing leverage — abroad. Read our guide to export credit insurance

Q: Will it really help me borrow more from my bank? Absolutely. Insured A/R improves your collateral quality, often increasing both advance rates and total facility limits. Explore how we support insured borrowing structures

Q: What does trade credit insurance cost? Premiums typically range from 0.1% to 0.7% of insured sales — a fraction of revenue. It often pays for itself by preventing losses or unlocking growth capital. (Source: SFNet)

Disclaimer:

This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC (“Securitas”) has helped clients develop credit and political risk transfer solutions that provide value on numerous levels. As an independent trade credit and political risk insurance brokerage, Securitas is focused on developing comprehensive solutions that meet the needs of clients, ensuring a complete understanding of policy wording and delivering excellent responsive service.

Tired of Lending Limits? Credit Insurance Changes the Game