Why do Traders Take Out Credit Insurance

Why take out a credit insurance policy: Learn about the benefits of credit insurance and how it can protect your business.

  1. To prevent bad trade debt by having buyers vetted by the credit insurer to assess if the buyer can pay on time each time a sale is made to them
  2. To enhance their credit control and cash flow positions. By insuring receivables against unexpected customer insolvencies and undue delays (protracted default) the trader gets relief from the risk of non-payment
  3. To be compensated for insured losses
  4. To obtain objective credit risk assessment on the buyer
  5. To sell more safely to new customers – local and export
  6. To expand sales to existing customers
  7. To develop a trusting business relationship
  8. If needed, to acquire additional working capital by using a trade credit insurance policy as collateral for its bank financing package

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What is Credit Risk

Credit risk is associated with a borrower failing to repay a loan.

What is Business Debt Recovery

All about debt recovery: Learn about the debt recovery process for businesses operating in UK and overseas

How Can I Maximise My Claim Payout

Maximising your claim pay out: Our seven tips for traders when making a credit insurance claim

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