Trade credit insurance: Secure your company against bad debts

Trade credit insurance is a solution that protects companies against the risk of unpaid customer debt, late invoice payment and customer insolvency. In the event of non-payment, trade credit insurer transfers an indemnity that cushions the blow of the loss. It is non-payment insurance for businesses.

Business credit insurance provides 3 vital services to ensure you avoid the risk of customer non-payment: Prevention of unpaid debts including monitoring your debtors; collection management; and – most importantly – indemnification if the customer fails to pay.

Credit insurance means you can prospect with peace of mind without worrying about customers who default. It also helps you to secure new financing because banks feel reassured by business credit insurance for their clients.

Collecting or managing overdue receivables becomes a thing of the past. When you are covered by trade credit insurance, the only risk of not being paid is if your customer challenges the quantity & quality of the delivery (or the service provided).

Yes: a credit insurance contract is a guarantee against non-payment by your customers or in a worst case scenario customer insolvency. The information supplied by the trade credit insurer can keep deliquent buyers away from insured policy holders.

You submit a request for your customers to be monitored, leaving you to rest easy once trade credit insurer have granted the guarantee: trade credit insurer will come back to you if there is a downturn in your customer's solvency. You make your sales without any intervention from trade credit insurer. 

In the event of non-payment, you provide the information to the insurer and they take over the collection process there and then – whether it’s in India or on the other side of the world. If these steps are not successful after a time-frame agreed in the contract, the compensatory indemnity is paid to you. Everything happens online.  Monitoring and an overdue notification, that’s all… with potentially hundreds of invoices guaranteed as a result.

If you are a small business with a maximum turnover of INR 670 million, the EasyLiner solution is made for you: it’s a simple credit insurance contract at an all-inclusive price that starts at INR 22,3435 a year.

Supplier credit insurance is also called business credit insurance, customer credit insurance, credit risk insurance, bad debt insurance or simply: credit insurance. This type of contract protects you against the risk of non-payment. In a sense it is customer non-payment insurance for businesses.

Export credit insurance is another term to describe trade credit insurance, but specifically refers to covering your export credit. Coface Group COFACE Group, through its insurance company partners in India and worldwide, offers simple and flexible credit insurance products that are tailor ed to fit your size, sector and business ambitions.
 

If your client is pleading a commercial dispute to avoid paying you, the trade credit insurer will check that they are not acting in bad faith in order to conceal their inability to pay. If the dispute is real and bona fide, the trade credit insurer will simply suspend our collection process while letting you settle the dispute within the context of your customer-supplier relationship. The guarantee is reactivated once the dispute has been resolved, and the invoice can be indemnified if the customer is unable to settle it.