If you sell goods or services on credit terms, you are exposing yourself to the possibility of bad debt. Coverforce Leed Insurance Brokers provides trade credit insurance solutions that protect your cash-flow by covering your losses if a debtor defaults on payment or becomes insolvent (through liquidation, receivership or bankruptcy). Trade credit insurance also protects you against the risk of non-payment by foreign buyers due to currency issues, political unrest, expropriation etc. The security that trade credit insurance provides may also boost your borrowing capacity with your bank.
How does trade credit insurance work?
Coverforce Leed Insurance Brokers will select the most effective trade credit insurance for your company. The provider will assess your buyers and their credit worthiness and then provide you with a credit limit which indicates the maximum amount you can trade with a particular buyer that is covered by your Trade Credit Insurance policy. This is based on many factors such as the buyer’s stability, payment history, financial analysis and market conditions, and provides a good indication of how safe that buyer is to trade with.
If a debtor goes insolvent or fails to make a payment, you have the protection of your trade credit insurance policy in place which will cover up to 90% (less your excess) of the transaction to make sure the daily running of your business remains unaffected.
Contact our team of insurance brokers in Perth today to find out how we can help protect your business against customer insolvency and payment default.