Whether you’re a major international distributor or a small specialist manufacturing business, the impact of suddenly being exposed to bad debt could be devastating and can take even large organisations to the brink by starving them of vital funds.
Trade Credit Insurance covers the non-payment of trade debts which arise from insolvency (receivership, liquidation, administration and bankruptcy) and protracted default, both here in our local region and overseas.
PSC Connect Member Brokers specialise in Trade Credit Insurance and have the ability to provide insurance for offshore transactions and customise policies that can indemnify against contract repudiation and political risk.
The key benefits of Trade Credit Insurance include:
- Protection of receivables – non-payment of a debt owed by a client exposes a company to a high risk that could lead to a loss of profitability and harm cash flow;
- Assistance in managing credit risk – The credit Insurers extensive database and knowledge on both local and international businesses help in the management of client credit;
- Cost saving – By using Trade Credit Insurance, companies save expenses such as: information, analysts, collection expenses, provisions for bad debt etc;
- Leveraging credit insurance for financing needs – Financial institutions look favourably on securing a company’s receivables, some of the benefits include increased financing for the policyholder, comfortable financing terms and improved financing ratios on the balance sheet;
- Increasing revenues and profitability – Credit insuring both local and international clients often contributes to increased sales that would not necessarily be conducted in the absence of credit insurance. Credit Insurance in some cases allows businesses to sell on extended terms and to sell to customers that they had previously not sold to due to a lack of information on that business; and
- Access to professional debt collection services – As part of most policies Credit Insurers contribute to the cost of debt collection for insured debts.
Our experienced PSC Connect Member Brokers can help you get the right insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.