What is Trade Credit Insurance?
Trade Credit Insurance is the answer to the risks that arise every time you grant credit to your customers.
Asset Security & Cash Flow Protection
Trade Credit Insurance is a protection on one of your most valuable assets, your accounts receivable.
An average of 40% of a company’s assets are in the form of trade debts that constitute one of the most vulnerable assets when it comes to risk of loss.
A company’s balance sheet is critically dependent on trade debt payment to ensure cash flow & profitability.
Trade Credit Insurance is a protection against your customers’ failure to pay these trade debts should they become insolvent (C.C.A.A., Chapter 7, Chapter 11) or fail to pay within the agreed upon time frame (refusal to accept goods, past-due accounts).
Political Risk & Risk Management
Trade Credit Insurance is a financial tool managing & monitoring both commercial & political risks that are beyond a company’s control.
Aside from business factors arising from the marketplace, companies are also impacted by political decisions that can affect individual businesses, industries and the overall economy.
These can include taxes, spending, regulation, currency valuation, trade tariffs, labor laws such as minimum wage laws, and environmental regulations.
Companies are subjected to multiple risks such as the inability to convert local currency and repatriate it, contract interruption, non-payment, confiscation, sovereign debt default or geopolitical unrest.
Trade Credit Insurance can remove or mitigate certain political risks. This allows management and investors to concentrate on the business fundamentals knowing losses from political risks are avoided or limited.
Trade Credit Insurance Benefits
Trade Credit Insurance can be essential to ensuring a business’ continued success by:
- helping you safely grow your sales & expand your business in domestic or international markets to new & existing customers;
- gaining a competitive advantage by offering safe, more lenient open payment terms or larger order sizes;
- protecting your business from the risk of customer default and catastrophic loss by making sure you get paid;
- giving you the best information to make the right decisions for your business and working closely with your internal credit manager to optimize your business’ credit management;
- being highly cost effective, flexible, tailored to fit your size, sector and business ambitions & giving you global capability while providing security for your business;
- improving your position with lenders by collateralizing accounts receivable, allowing lenders to improve margining and/or bank financing conditions.
UNI Trade Credit Insurance Brokerage Benefits
We offer you innovative and customized solutions specifically adapted to your needs. This is why UNI Trade Credit Insurance Brokerage carries out, at no cost to you, a comparative study of the various solutions offered by the largest credit insurers.
UNI Trade Credit Insurance Brokerage helps you manage a trade credit insurance policy underwritten by the insurer and ensures prompt processing of credit limit requests and disputes.
Our no cost service to you also includes:
- an expert comparison of the terms of the policy with other offers on the market;
- a study of your general conditions of sale;
- solutions for optimizing the management of debtors;
- training of employees responsible for monitoring debtors;
- the development and control of the terms of the policy and its endorsements;
- a timely intervention in the event of problems with credit limits;
- a vigilant approach and careful monitoring of disputes with a view to obtaining a prompt payment;
- international trade credit insurance solutions for your subsidiaries worldwide;
- other risk financing solutions.
Contact us or request a quote today.