Trade Credit Insurance
Trade Credit Insurance provides cover for businesses for an insured loss incurred due to non-payment of a domestic or overseas invoice(s) due to the insolvency of the end customer or non-payment after an extended period of delay (protracted default).
A policy can also include political risk cover, pre-credit, consignment stock, as well as trade specific clauses to cover risks in various sectors.
There are many types of policies available. These include whole turnover, single or multi debtor, export, domestic, group programmes, catastrophe, losses arising/attaching, balance outstanding, top up or true syndication.
Increasingly policies are being leveraged to secure receivable funding as it provides a degree of added comfort to increase working capital availability to support sales growth.