Trade credit insurance helps companies to ensure that they can continue with business, when buyers do not pay for goods or services which have been bought on credit. In the event that the buyer is unable to pay because of bankruptcy or insolvency, credit insurance will replace the lost capital.
Overall benefits of trade credit insurance include:
●Improved lending terms and funding options
●Expert help with debt collection
●A more disciplined credit management system
●Assurance of healthy cash flow
●Security when making sales on credit
●Help in maintaining your company’s bottom line
Despite the many practical benefits of taking out trade credit insurance, often the most pertinent benefit is peace of mind. Entrusting your credit management to expert insurance underwriters frees up your time so that you can focus on what is truly important ㅡ the daily operations, development and expansion of your company.
Domestic and Export Trade Credit Insurance
There are two major kinds of trade credit insurance. One covers risks associated with domestic trade. The other protects companies against liabilities related to international trade. At Charles Dominic Ltd we provide trade credit insurance for Surrey and South East based companies whether they are dealing in domestic UK trade or exporting to other countries in Europe and around the world or both.
Domestic (UK) Trade Credit Insurance
We offer domestic Trade Credit Insurance to companies based in Surrey and the South East region who wish to protect their business against the commercial risks related to trading in the UK. Domestic trade credit insurance includes protection against non payment of trade receivables, due to the buyer's insolvency, for example liquidation, receivership, administration, or protracted default where the buyer doesn't pay but hasn't gone into insolvency either.
Credit insurance is a risk management tool which helps your business select the right customers and move safely into new niches by providing:
●Commercial risk prevention
The benefits of domestic trade credit insurance include:
●Protection Against non Payment and Insolvencies
●Information on Existing and New Customers
●Debt Collection and Legal Services
Export Trade Credit Insurance
UK Exporters or companies who sell their goods or services internationally as part of their regular operations should consider export trade credit insurance. Apart from the commercial risks of non payment as described in the domestic trade credit insurance section, if your company is selling items or services overseas, there are the additional political risks such as:
●Currency Exchange Transfer Delay
Taking out export trade credit insurance will offer protection for your business against these export risks in addition to the conventional commercial risks.