Trade Credit Insurance provides protection against the risk of assets becoming bad debts.
If a business sells goods and services on credit terms, a substantial percentage of their working capital is probably tied up as money owed from their customers.
The key benefit of Trade Credit Insurance is that lost working capital is quickly replaced. In addition:
- policies can be assigned to a financier to increase borrowing capacity
- policyholders are provided with a range of credit management tools to improve
- cash flow.