Trade Credit Insurance

Trade Credit Insurance, also known as Credit Insurance, is a valuable risk management solution that can help safeguard businesses against the potential threat of non-payment by customers.

A Trade Credit insurance policy ensures that a company will receive payment for their products or services in the event of their customer’s insolvency or default. This insurance helps businesses minimise the negative impact of bad debt on their financial stability by maintaining a healthy cash flow.

It is common for businesses across the UK to offer credit terms to their customers, allowing them to defer payment for goods or services. While offering credit can enhance customer relationships and boost sales, it also introduces the risk of payment defaults. This is where Trade Credit Insurance plays a crucial role in helping to protect businesses from financial losses arising from a customer’s insolvency or non-payment due to default. With Trade Credit Insurance, businesses can protect their finances by mitigating credit risks, ensuring continuity in their operations despite these uncertainties.