Trade Credit insurance

 

WHY TRADE CREDIT INSURANCE?

Each time you grant credit to your customers, your company is exposed to the risk of non-payment. There is a greater chance that a business will experience a loss within its accounts receivable than any other asset. With an average of 40% of a company’s assets in the form of trade debts, accounts receivable are a critical component of your balance sheet, directly affecting cash flow and profitability. Yet while you insure your company against property loss, liability or other unpredictable, high-exposure events, you’re leaving one of your most valuable – and vulnerable – assets open to loss. Accounts receivable coverage through trade credit insu​rance offers a safer way to do business.

Trade credit insurance, also called accounts receivable insurance or trade credit risk insurance, is a financial tool that manages both commercial and political risks that are beyond a company’s control. It is protection against your customers’ failure to pay their trade debts. This can happen when your customer becomes insolvent or fails to pay within the agreed upon timeframe.

Learn more from our What Is Trade Credit Insurance page.

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Trade Credit Insurance FAQs

 

HOW DO COMPANIES USE TRADE CREDIT INSURANCE TO GROW SALES? 

 

 

Why should a company that is "self-insuring" consider credit insurance?

 

Why should exporters be interested in credit insurance?

 

WHAT MAKES EH TRADE CREDIT INSURANCE UNIQUE?

More important than mere risk transfer, a commercial credit insurance policy with Euler Hermes is an investment in a partnership with us. We help you leverage our knowledge and financial stability to realize several valuable benefits that can offset the cost of your policy many times over – even if you never make a claim.

Investing in a Euler Hermes trade insurance policy enables you to:

  • Grow sales safely, domestically and abroad, to new and existing customers
  • Protect your business from the risk of customer default and catastrophic loss
  • Improve the efficiency and results of your credit management department
  • Gain a competitive advantage in exporting by offering safe, open terms overseas
  • Reduce bad-debt reserves
  • Obtain greater access to bank financing, often at more favorable rates

 

With thousands of policyholders from small businesses to large multinationals, Euler Hermes can show you how our accounts receivable insurance coverage delivers the value that matters to your company.

    Use our quick calculator to see how credit insurance can transform your business.