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Credit Insurance

Featured Credit Insurance Company – Atradius

■ A specialist Credit Insurer
■ 2nd largest credit insurer in the world
■ Over 160 offices in more than 50 countries
■ Access to information on over 260 million companies worldwide
■ More than 90 years of experience in the credit insurance

For more information on the carrier visit: https://atradius.us/

What is Trade Credit Insurance?

Trade Credit Insurance, sometimes called Accounts Receivable Insurance, is a method by which a seller transfers their accounts receivable credit risk (failure by the buyer to pay for goods or services) to an insurance company. This type of insurance protects a seller’s unpaid invoices and, where needed, WIP against the repercussions of a buyer's insolvency/bankruptcy or protracted default (slow pay).

Trade credit insurance, at its core, protects a seller’s cash flow, earnings, and potentially years of accumulated retained earnings from the impact of buyer nonpayment. When a claim is filed, the insurer steps in and pays the seller when the buyer cannot pay.

What is Political Risk?

Political Risk, also known as “geopolitical risk,” is the risk of loss of assets, income, or property suffered by corporations, lenders, or investors because of political changes or instability in a country. Political risk is present with physical assets located in a host country and when trading with a foreign buyer or a sovereign-owned enterprise.

Political risks can drastically affect a company’s investment in a host country. Foreign government intervention or political violence can render a company unable to operate or withdraw its capital from a host country.

What are the Key Benefits of Trade Credit Insurance?

■ Catastrophic loss protection - Non-Payment or Insolvency by your open term customers.
■ Safe sales expansion - Credit insurance allows you to grow your business without worry
■ Increased Borrowing - Your credit insurance policy can help you maximize working capital
availability from the receivables you pledge to your lender.
■ Credit decision support & information on your customers - With Credit insurance, you are getting a partner in credit risk management whose goal is to help you avoid credit losses before they happen.
■ Allows companies to lower their bad debt reserve - Credit insurance will allow you to lower your bad debt reserve significantly and manage write-offs with greater certainty.

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