Trade Credit Insurance
CREDIT INSURANCE PROTECTS YOUR BUSINESS FROM NON-PAYMENT OF COMMERCIAL DEBT. IT MAKES SURE YOUR INVOICES WILL BE PAID AND ALLOWS YOU TO MANAGE THE COMMERCIAL AND POLITICAL RISK OF TRADE.
Benefits to using credit insurance:
- Safely increase sales without increasing risk
- The ability to ship safely allows you to grow your sales and helps offset the premium of the credit insurance cost.
- Increase borrowing rates with your bank
- Without Trade Credit Insurance banks usually won’t lend against foreign receivables. Trade Credit Insurance assures banks that account receivables are protected by an investment grade insurer. This will allow them to include foreign receivables in the borrowing base.
- Catastrophic loss protection
- If you have a customer that couldn’t pay you tomorrow and it would have an effect on your companies’ profits then you should look at insuring that risk.
- Insure export sales
We are your Trade Credit Insurance solution.
WHAT TYPES OF TRANSACTIONS CAN BE COVERED?
Sales to Single Buyers
Do you have large sales to one customer? If so we can offer single buyer insurance.
Sales to Key Buyers
This service will insure sales to the top 10 to 25 buyers that you sell to.
Whole Turnover Policy
This service would insure your whole portfolio.
What is trade credit insurance?
Trade credit insurance, also called business credit insurance, export credit insurance, or credit insurance is an insurance policy and a risk management product offered to businesses needing to protect their accounts receivables from loss due to credit risks. Trade credit insurance can include a component of political risk insurance to insure the risk of non-payment by foreign buyers.
How do I Apply?
You can download and fill out our form. Then mail, email or fax it back.
The application is comprehensive and we ask that you pay special attention to the following areas for the quickest response.
- Annual sales and accounts receivable write-offs for the past 3 years
- A list of key buyers, including names, addresses, phone numbers, credit limits and terms
- A summary of open account balance aging
What Risks are covered?
Credit insurance covers commercial risks such as insolvency and protracted default. Export credit insurance will usually add political risk coverage including: cancellation of import/export licenses, a foreign government’s intervention, transfer risk, embargo, a state of war or civil violence, and the non-payment of a valid trade obligation by a sovereign buyer.
How much does credit insurance cost?
The premium for credit insurance typically is calculated as a small percentage of your annual insurable sales. The rate is based on the risk of your specific portfolio, your loss history, the spread of risk, and the amount of self-insurance you are willing to absorb. Costs may vary depending on the amount of your portfolio you cover.
Is there a deductible?
Like most insurances, there will always be some form of risk sharing on your part. This could be in the form of a policy deductible, a per-loss deductible, co-insurance to enhance the program or a combination of these factors. These forms of risk retention are typically used to keep your cost in balance and to allow for more flexible coverage.
Is there an additional premium charge to use your services?
No! Rates for credit insurance are regulated. Part of the filings make distributions cost a responsibility of the carrier. You bear no cost for our services and in fact benefit because of the competitive advantage we bring to the equation.
For which insurance carriers does Market Trade Credit act as a broker?
Market Trade Credit brokers insurance policies for all the major carriers, including but not limited to: Atradius, AIG, Coface, Euler Hermes, FCIA, QBE, XL Catlin and Zurich. Market Trade Credit will use any and all resources to find the absolute best match for your coverage needs, including the alternative risk markets.