What Is Credit Insurance?
Credit Insurance is a proactive financial risk management tool designed to protect one of your most valuable assets – your accounts receivable. Credit insurance protects against bad debt losses, which can occur due to many unforeseen circumstances. Coverage typically extends to protracted default and insolvency events on domestic and export trade receivables. When dealing specifically with foreign trade, coverage often also extends to a range of Political Risk events.
While most of the world’s leading multi-national companies that deal in export trade currently use Business Credit Insurance to protect their receivables, it is also vital for small to medium-sized businesses to protect what they’ve worked so hard to build. Trade Credit Insurance can be the foundation for secure growth. By providing a safety net for potentially catastrophic credit losses, Credit Insurance can open up sales opportunities you may not otherwise be willing to consider.
Not only can Trade Credit Insurance protect your accounts receivable, it can also offer the following key benefits: