Credit insurance provides a business with protection against the failure of a customer to pay their trade debts. This can arise as a result of a customer becoming insolvent or because a customer fails to pay within the agreed credit period.
On average, companies have 40% of their current assets in the form of debtors. The cost of bad debt can be very significant – in some cases, fatal.
Credit insurance protects a business against bad debt and customer failure. This is especially relevant to small business, credit insurance can significantly reduce risk.
Any company selling on credit terms to trade debtors, from start-up to multi-national, from manufacturer to service provider can benefit from trade credit insurance.
Exporters can take out a standalone export credit insurance policy.