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FAQ

frequent questions and answers
  1. To prevent bad trade debt by having buyers vetted by the credit insurer to ensure the buyers are correctly identified and can pay on time each time a sale is made to them
  2. To enhance their credit control and cashflow positions. By insuring receivables against unexpected customer insolvencies and undue delays (protracted default) the trader gets relief from the risk of non-payment
  3. To be compensated for insured losses
  4. To obtain objective credit risk assessment on the buyer
  5. To sell more safely to new customers – local and export
  6. To expand sales to existing customers
  7. To develop a trusting business relationship
  8. If needed, to acquire additional working capital by using a trade credit insurance policy as collateral for its bank financing package

Trade credit insurance protects your business from bad debts.

It insures your accounts receivable and protects your business from unpaid invoices caused by customer bankruptcy, default, political risks, or other reasons agreed with your insurer. It’s also known as debtor insurance, export credit insurance and accounts receivable insurance.

1. To prevent bad trade debt by having buyers vetted by the credit insurer; this allows to ensure the buyers are correctly identified and can pay on time each time a sale is made to them

2. To enhance their credit control and cashflow positions. By insuring receivables against unexpected customer insolvencies and undue delays (protracted default) the trader gets relief from the risk of non-payment

3. To be compensated for insured losses

4. To obtain objective credit risk assessment on the buyer

5. To sell more safely to new customers – local and export

6. To expand sales to existing customers

7. To develop a trusting business relationship

8. If needed, to acquire additional working capital by using a trade credit insurance policy as collateral for its bank financing package

There are five key benefits of a trade credit insurance policy:

  1. Increases your sales and helps you grow.
  2. Improves your cash flow
  3. Unlock better rates from your lender
  4. Reduces bad debt provision and protects your bottom line
  5. Decreases credit management costs

Business debt recovery is the process of chasing businesses to pay back money they owe.

Good commercial debt collectors:

  • Promote amicable debt collection and good relations between parties
  • Liaise with debtors across jurisdictions and time zones
  • Assess the financial situation of the debtor and guarantors (if any)
  • Recommend whether legal proceedings are necessary