Are you worried about whether your customers will be able pay you?
Trade credit insurance will pay you if your customers are unable to settle their invoices for specific risks. For example, due to bankruptcy, insolvency or other commercial or political risks outside of your control. It essentially covers your accounts receivable ledger, and therefore is often used alongside strong credit control processes.
Trade credit insurance is also known as accounts receivable insurance or debtor insurance. It can also be used when exporting and insure international sales – this can be a major competitive advantage.
The benefits include, protecting your capital, securing your cashflow and can also improve your creditworthiness, leading to more favourable terms from lenders. It can allow you to expand your sales operation. For example, with such insurance in place, your business could feel more secure and therefore pursue larger or more risky customers or markets than otherwise you might have considered.
Factors that influence the terms of trade credit insurance are: the number and size of your customer base, their credit history, the industry you operate in and the markets your sell to.
Contact Ignite Business Group today! Whatever your business need or preferred finance solution, we can help advise you and find you the best deal in the market.