If your company wants to take control over your cash flow and overall finance, you should consider the benefits of trade credit insurance.

This will help minimize negative financial impacts to your company, such as lowering the risks of bad debt and keeping unpaid accounts under control.

Think of trade credit insurance as an investment – one that will allow your business to grow.

What does Trade Credit Insurance cover?

Simply put, having trade credit insurance safeguards your business from non-payment of commercial debt. That means you will have your business-to-business accounts under protection from certain foreseeable and unforeseeable events.

For example, if you do not receive payment due to a buyer’s bankruptcy, your trade credit insurance policy may reimburse you for all or most of the debt. You may also receive coverage for delayed payments in some situations.

Trade Credit insurance allows you to figure out the next steps in your company’s journey without having to worry about future payments to fulfill your goals.

Because of that, both your business and your capital will be under protection and your cash flow will suffer no long-term disruptions.

Trade credit insurance allows you to steer away from commercial risks beyond your control.

This policy allows you to add an extra layer of security which allows you to engage new, larger customers.

Is Trade Credit Insurance right for you?

You may decide to invest in trade credit insurance if you want to:

  • Access better financing opportunities: Banks usually favor businesses with insured receivables; having your business be on the right side of the banking world will allow you to access better financing instruments at a lower interest rate.
  • Better assess your business decisions: Making the right business decisions is all about information and timing. By investing in trade credit insurance, you will also be able to access your insurer’s database and assess risk data faster.
  • Get protection from non-payment and loss: Being protected from non-payment (and the eventual catastrophic loss that comes from it) is at the heart and center of trade credit insurance. Going through a catastrophic loss will be nearly impossible as your insurance will keep that from happening.
  • Expand your business: As you are protected from old risks and minimize new ones, you will be able to expand your company into areas that you never thought of before. As you expand your business, new risks will become non-threatening, so you can continue expanding on to new horizons.
  • Increase your sales: Expanding with confidence due to low risks is the best way to increase your sales and profits. Whether you decide to sell more to current customers or pursue new ones, your trade credit insurance will be there to keep you away from harm.
  • Reduce bad debt: Thanks to your new trade credit insurance, you will be protected from acquiring new bad debt; at the same time, you will slowly remove ongoing bad debt as time goes on – and this will allow you to heal your business’s finances.
  • Increase capital: As you get rid of bad debt, you will be able to increase your company’s capital – and do so at a healthy rate. Your trade credit insurance will prevent customers and buyers from putting you in a bad financial place, so you can continue to expand your business and increase your capital.