Trade credit insurance is an invaluable tool that can help companies expand their export sales in the global market, grow their business with greater confidence and mitigate the risks associated with exporting goods and services and operating with unfamiliar markets. This insurance policy is designed to provide companies with protection against non-payment of trade receivables, which can help to manage their cash flows, reduce the risk of loss and make it easier to enter new markets and offer credit terms to their foreign buyers.

Here are 3 ways that Trade Credit Insurance can help your company increase exports:

  1. Mitigating the risk of financial loss: One of the biggest advantages of trade credit insurance is that it can help to limit the risk of financial loss. When exporting goods or services on credit, businesses face a range of challenges, including the risk that the buyer may not pay the full agreed amount or pays very late. This risk can be particularly pronounced when working with foreign buyers, as there may be additional geopolitical and macroeconomic risks and changes in the market conditions that are tough to anticipate. By providing coverage against the non-payments by foreign buyers, trade credit insurance helps to minimize the risk of today’s dynamic trading conditions. This, in turn,  allows companies to offer competitive credit terms overseas and reduces the risk of loss due to unique export risks. Additionally, trade credit insurance can also protects against customer bankruptcy or default on their payments, so that you can relax and do business more safely abroad knowing you are protected and your finances supported.
  2. Facilitating financing: Another important benefit of trade credit insurance is that it can provide companies with improved access to financing. Financial institutions and banks look favorably on insured companies or may even require a trade credit insurance in place before they approve financing, as it reduces the risk of financial loss for the lender. This is especially beneficial for small and medium-sized companies that may have limited access to financial options compared to larger companies. Furthermore, by mitigating the risk of non-payment or default, trade credit insurance can also positively impact your company's credit rating, making it more attractive to potential lenders and investors.
  3. Enhancing Sales and Marketing Efforts: Businesses of all sizes that choose trade credit insurance benefit from accelerated safe sales expansion. This insurance policy gives you the confidence to trade and get paid as well as demonstrates to potential buyers that your company is taking action to mitigate the risks associated with extending credit, which can strengthen your business relationship and make them feel more comfortable trading with you. This can be especially significant in highly competitive industries where companies are looking for ways to differentiate themselves from their competitors. Furthermore, trade credit insurance can also provide valuable information about potential buyers and monitor their financial health that can empower companies’ trading decisions.

What’s more, Trade Credit Insurance can be tailored to meet the specific needs of your company. Different policies are designed to fulfill different coverage requirements and can be customized to suit the needs of specific industries or types of goods or services. For example, a company that exports perishable goods may want a policy that provides coverage for the entire value of the goods, while a company that exports less risky goods may only require coverage for a portion of the value.

In conclusion, trade credit insurance is a risk management tool that allows companies to increase their overall export sales, reduce credit risks related to both domestic and international trade and improve profitability. It protects your business from unpaid invoices due to customer bankruptcy, default, insolvency or political and economic risks, facilitate trade and export financing and enhance sales and marketing efforts without credit concerns.

By taking advantage from the benefits of trade credit insurance and relying on credit assessment experts, companies can feel more confident to extend credit to foreign customers and increase their export sales potential.

We help you trade safely and take control of tomorrow by providing a tailor-made solution that best suits your company's unique needs.