TRADE CREDIT INSURANCE

Our unique Trade Credit policies give you selected debtor trade credit insurance, allowing you to select the risks you want to insure and to set your own limits.

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For businesses that deliver goods or services on credit terms, just one bad debtor can cripple the entire supply chain. In today's economy, maintaining cash flow to grow your business can be a difficult balance.

Our expert advisers, along with highly experienced insurance underwriters, are able to discern good credit decisions, taking the time to understand each and every case. This, together with our economic and industry understanding, means we are able to provide the right advice to guide your business in offering credit to your customers. Meaning that you can safely extending credit & steadily grow your turnover.

Why your business needs Trade Credit cover

In current market conditions, making credit decisions for a company is an onerous task. Trade credit cover minimises your exposure, equipping you to make the right decisions. Through effective credit management and risk transfer, you will have complete assurance every step of the way. The underwriters will perform a holistic credit check on your chosen debtors to ensure you have all the knowledge you need before entering into any agreements. The unique, market-leading products we offer allow businesses to buy insurance on a selected debtor basis – that’s cover tailored to your bottom line. This policy could also allow you to inject the cash flow you need, when you need it, by acting as security.

The benefits include:

Cover for businesses of all sizes across most industries.
Competitive and negotiable rates.
You'll find our unique range of comprehensive insurance policies are designed and selected to cater for your specific personal and business needs.
Expert Insurance Management from a team that cares.

What makes this cover different?

Our unique Trade Credit policy gives you selected debtor trade credit insurance, allowing you to select the risks you want to insure and to set your own limits. Unlike our other policies, you can select the cover you need, from your full debtor book or specific individual debtors. Your risk will be priced on individual debtors so that you can determine the correlation between risk and cost, making the right decision for your business.

What about claims?

With this policy you can rest assured that you are paid when you should be paid, either directly by your client or through a claim. Once a point of undisputed indebtedness has been reached, this policy pays out claims without waiting periods, allowing you to keep your lights on and your wheels turning.

There are four events that can trigger a claim:

A signed acknowledgment of debt from your debtor,
A court judgment against your debtor,
Business rescue or
liquidation.

As soon as a debt is overdue, we will assist you with submitting a claim to the insurer. The insurer will manage the pre-legal file at their cost. Claims then become payable when the debt is undisputed.

How to get covered

Simply click on the button below, complete the short form, & one of our expert advisers will get in touch to discuss you cover options.

FAQs

What you need to know ...
These are just some of the most frequently asked questions we receive about our cover.

1What transactions can be covered?

Any debtor resulting from goods delivered or services rendered is eligible for this product. Leases, of property or assets, or any money lending transactions are not covered.

2How are the premiums calculated?

Premiums are calculated either on the credit limits approved by the insurer or a turnover or outstanding balances basis, depending on the structure of the policy. The rate is based on the outcome of the assessment of the underlying debtor (A to D rating) or on a portfolio rating as you choose.

3How long does it take to get a limit insured?

Once all the required information is provided, the insurer will take four working days to perform a comprehensive credit review on the debtor and provide a premium rate.

4Are there a minimum number of days per credit limit?

A credit limit is required to be in place for a minimum of 120 days. While you may increase a limit at any stage, the limit cannot be reduced for a period of 120 days. This is due to the anti-selective nature of the product and the fact that risks are covered on a goods delivered / services rendered basis. Reducing limits shortly after a transaction is concluded would expose the insurer to the entire risk without commensurate premium income.

5What risks are excluded?

No risks are specifically excluded. The insurers believe in making good credit decisions and will consider all of them and rate them individually on their own merits.

6What happens if the insurer declines my debtor?

The real question here is, “Why am I considering selling on terms to this client in the first place?” The insurer will provide us with the reasons as you will need to understand why any particular debtor is declined. The insurer will never decline without being able to substantiate why. Our advice would be to offer cash terms to these clients.

7What happens if I trade over my limit?

You may select any limit within the approved credit limit that you feel comfortable with. This is the insurer's way of managing large premiums. The only difference is that you would “reinsure yourself” for the loss over the insured limit. The insurer would recover the insured portion (in proportion to your excess) first, and then would continue to assist you to recover the balance of the amount outstanding.

8What industries are covered?

The selected debtor route means that the insurers do not decline any industries or sectors as a matter of course. There are good risks in all sectors and the insurer will consider any you may require cover on.