What is Trade Credit Insurance (TCI)?

Trade credit insurance can be a risk management tool to protect your business against bad debts.

It covers your receivables, protects your company from unpaid invoices resulting from customer default, bankruptcy, or other circumstances agreed to with your insurer. Credit insurance can be purchased for either your domestic or export customers. Flexible coverage that can be customized to suit your needs is possible.

Trade Credit Insurance also goes by the names of debtor insurance, export insurance, and accounts receivable. Our Guide contains more information about Trade Credit Insurance terminology.

II. What is Trade Credit Insurance?

Customers can sometimes default on payments, no matter how careful you may be. You are vulnerable to bad credit if your customers don’t pay upfront or you have credit insurance.

What Does The Credit Insured Do?

Trade Credit Insurance is a powerful financial management tool that protects your business from potential losses due to the non-payment of trade-related debts. This Credit Insurance helps ensure that your company isn’t adversely affected by an unforeseen failure of a customer. It is also a tool to help manage your credit risk

A global leader in credit and insurance, you have access to credit expertise and market information.

Your customers’ financial situation can be assessed professionally and effectively.

Indemnification for unpaid debts

Services for global debt collection available worldwide for debt recovery

Can your business handle a bad loan?

Credit insurance protects your cash flow. It protects you and your customers’ trade so that you can still get paid, even if they fail to pay or go under.

Trade credit insurance covers you against your buyer’s failure to pay. Each invoice with this customer is covered for the entire insurance year, up to the terms and conditions of your policy.

All businesses use it to protect domestic and international trade. Credit insurance can also be used by businesses to obtain finance and working capital from banks, secure new markets and attract new customers.

This type of debtor insurance provides many benefits. It can protect your accounts receivables against potential bankruptcy. This type of insurance can not only protect your company from the possibility of bankruptcy but it can also help:

Potential buyers might be attracted by your credit terms and you can grow your customer base

You can increase trade to give you the confidence to grow and expand your market

Cash flow guarantees allow you to establish strong relationships with suppliers and employees.

Protect customer relationships with improved communication and better credit terms

Increase your financial access and improve your relationship with your bank

You can meet the requirements of your board or stakeholders for risk management and give peace of mind

Credit insurance might be tax-deductible and you may be eligible to use it as a business service. Credit insurance can be required by your management board. You may find it an invaluable asset when you seek finance from banks. Credit insurance can be used by all types of businesses, including SMEs and large multinationals.

There is no one-size-fits-all approach to insurance. Your credit insurance needs will determine the level and cost. The size of your credit portfolio, the risk level associated with customers, and location of your market are all factors that will determine the cost of credit insurance. Many trade credit insurance options can therefore be customized to suit your needs.

How to Apply for Trade Credit Insurance

It is simple to apply for trade credit insurance. A member of our team will be happy to assist you. You will be assisted by one of our regional managers to help you design the policy that is right for you and your business.

Trade credit insurance is a must for all businesses, regardless of how large or small they are. Trade credit insurance can help you grow your business and get more clients. It also gives you protection against customer defaults.