Trade Credit Insurance
Trade Credit Insurance covers businesses from losses related to insolvency or nonpayment, allowing them to keep trading for years to come. Regardless of the sector, if you supply a product or good you can take out Trade Credit Insurance to protect your business.
There are many a risk associated with the sale of products and goods, many of which are beyond a supplier’s control. One of the greatest risks is the failure of a buyer to pay for the goods or services it purchases, which can have a disastrous effect on the viability of a supplier.
How does it work?
Trade Credit provides clients with a policy that is an alternative to pre – or upfront payment. This means that growing businesses can order or supply essential products without relying on upfront payment, allowing them to generate sales and establish new connections with consumers.
Whether you are conducting business locally or internationally, operating with Trade Credit means the payment is not secure until it is in your account. This leaves your business vulnerable to risks, which is where this type of insurance protects you.
What is Trade Credit Insurance?
It covers businesses against loss that results from nonpayment by a client. In the event of nonpayment, businesses can raise a claim with their broker which can grant repayment for a portion of the original loan, usually around 90%.
Trade Credit Insurance also provides political risk insurance, which covers the risk of non-payment by international customers due to factors outside of their control, such as Expropriation/government interference. Transfer & Conversion. Political violence.
Trade Credit Insurance is unique in that it is an ‘open policy’ meaning you can continually add clients to the policy throughout the year. This allows you to continue trading and expanding your client base with peace of mind.
Why Choose Konsileo for your Trade Credit Insurance?
The level of cover varies for each business and includes considerations for location, size, sector, profitability, and past claims history. It is imperative you take out the correct cover. If it is not done properly, you could be faced with a hefty financial loss.
Here at Konsileo, our team have a wealth of specialist experience, dealing with a multitude of businesses in a wide range of sectors. Their combined market and policy knowledge provides them with the expertise required to advise and tailor Trade Credit Insurance to your unique needs. Contact one of our specialist trade credit brokers today to protect your business, properly.
We insure a great deal of industries.
Looking to cover your business but not finding the industry you’re looking for?
Take a look at all the industry sectors we serve below.