Trade credit insurance cover is a practical measure for protecting business liquidity in case of nonrefundable of accounts receivable by an integral customer.
Any company that sells goods or provides services on credit terms is in danger of non-payment due to the bankruptcy of a key customer ( receivership, liquidation, or bankruptcy), payment default, or continuing non-payment by clients. More information about trade credit insurance is also available at Das Insure.
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Trade credit also enables exporters to safeguard themselves against political risks such as contract frustration, export limitation, currency inconvertibility, and exportation.
The trade credit insurance policy practice delivers tailored insurance solutions to secure your company by providing stability through the assurance of payment.
A further chance for development through expanding sales channels and amounts, which makes it a valuable strategic tool for raising earnings and earnings.
How trade credit functions
Trade Credit insurance protects producers and service providers from the chance of non-payment, covering their losses when a borrower defaults payment. Similarly, buyers sometimes decide on a bankruptcy protection arrangement, which permits them to delay payments for an elongated period.
Trade credit insurance benefits
-provides securities to stakeholders such as financial institutions and investors
-enables business growth and flexibility of policy
-protects profits and regulatory compliance for some businesses (eg: wine exports)
-competitive premiums and tax-deductible