Trade Credit Insurance
Trade credit insurance, also known as export credit insurance, is a financial tool and insurance product that ensures businesses selling goods to other businesses (B2B) can guarantee payment from buyers.
- It can reimburse you for unpaid credit balances or accounts receivables.
- Most policies insure for a variety of risks like late payments, non-payment and customer bankruptcy.
- Policies are underwritten based on the insurance buyer profile(s), not the seller.
- Buying this product may improve your bank’s assessment of your business’s creditworthiness, which can improve the terms you receive from your lender.
Who Needs It?
Any business involved in domestic or international trade who sells goods to other businesses (B2B) on credit terms and who wants to insure their accounts receivables.
Companies that purchase credit insurance gain a partner to sustainably grow new business, unlock faster & safer credit decisions, and protect against bad debt write offs. Trade credit insurance can be leveraged to receive better borrowing terms from banks as well as avoid elongated and costly collection services.