Trade Credit Insurance

Credit insurance protects the insured from commercial nonpayment event due to insolvency and/or protracted default (slow-pay).

 

Benefits of Trade Credit Insurance:

Cash flow protection – Buyer nonpayment, due to insolvency or slow pay, can have a significant negative impact on a company’s cash flow. Trade credit insurance allows a company to mitigate the financial impact of buyer nonpayment by transferring credit risk to a well-capitalized insurance company.  Learn More

Increased competitiveness – Secured or restrictive terms of sale can be a competitive disadvantage in trading relationships. Internationally, the working capital requirements of a commercial letter of credit can limit or preclude sales opportunity. Trade credit insurance allows a company to offer open account terms to international buyers, while reducing credit risk, which provides a distinct advantage when competing globally. Domestically, trade credit insurance allows companies to offer longer or extended terms to buyers.  Learn More

Sales Growth – Often, buyers want to trade beyond pre-established credit limits. Trade credit insurance allows companies to expand sales without incremental credit risk by adding coverage to existing credit lines.

Monetize accounts receivable / increase working capital – Accounts receivable represent the primary source of repayment for a working capital credit facility.  Trade credit insurance enhances the receivable being financed thereby allowing a company to obtain expanded credit facilities, better advance rates, and improved terms through the reduction/elimination of ineligibles (concentrations, cross aged, foreign a/r).

900 West Valley Road, Suite 701 | Wayne, PA 19087
Tel. 484-595-0100 Fax. 484-582-0111

P.O. Box 3665, Tyger Valley, Cape Town 7536 South Africa
Tel. 072-308-1112

Specializing in Trade Credit Insurance, Political Risk Insurance and Capital Solutions