Trade credit is an agreement between two companies, where the supplier of goods or services accepts a deferred payment from its client. Trade credit insurance protects businesses from overdue payments of bad debt & covers accounts receivable.
What is Trade Credit? Trade Credit & Accounts Receivable Insurance
What is Trade Credit? Know Trade Credit & Accounts Receivable Insurance! Allianz Trade offers trade credit insurance that protects businesses from overdue payments of bad debt & covers accounts receivable.
What is trade credit?
What is trade credit insurance?
Trade credit insurance – also sometimes called accounts receivable insurance – is different from “insurance” in the traditional sense. It is a partnership that provides world-class knowledge and data to empower your trading decisions, backed by a reimbursement guarantee should an unexpected customer non-payment occur. Businesses that choose trade credit insurance benefit from safe sales expansion – at home and abroad – to new and existing customers. It also helps you access to working capital while reducing your overall risk.
What does trade credit insurance cover?
It protects businesses from non-payment of commercial debt. It covers your business-to-business accounts receivable. If you do not receive what you are owed due to a buyer’s bankruptcy, insolvency or other issue, or if payment is very late, the policy will reimburse you for a majority of the outstanding debt. This helps you protect your capital, maintain your cash flow and secure your earnings while extending your competitive credit terms and helping you access more attractive financing.
With trade credit insurance, you can reliably manage the commercial and political risks of trade that are beyond your control. It can help you feel secure in extending more credit to current customers or pursuing new, larger customers that would have otherwise seemed too risky.
How does it work?
Customers Health Check
We analyse the credit worthiness and financial stability of your customers.
Credit limit calculated
Each customer has a limit which is the maximum amount we will indemnify if that customer fails to pay.
Business as usual
You trade with your existing customers as you wish, with the risk covered up to the limit.
Trading limit updates
We keep you informed of adjustments to limits as they may be raised or reduced when conditions change.
Business building
You check the credit worthiness of potential new customers. We confirm agreement or explain if your request is declined.
Making a claim
If a customer fails to pay, then you give us full information.
We investigate and indemnify you for the insured amount if policy terms have been met.
We investigate and indemnify you for the insured amount if policy terms have been met.
Top reasons to buy
Protection
Ultimately, we are there to quickly replace money lost through bad debt
Peace of Mind
Feel safe in the knowledge that your outstanding invoices are protected
Competitiveness
It helps you remain competitive by enabling you to offer open credit when your competitors can't
Funding
We help in securing trade finance which improves banking relationships and access to finance
Profitability
Improve profitability by safely increasing your exposure to more customers
Cash Flow
It complements and enhances existing credit control procedures to improve Days Sales Outstanding
Information
You gain access to greater customer intelligence that leads to balanced risk decisions
Growth
It facilitates expansion with security and allows you to deal confidently with new clients and increase credit lines to existing ones
Maximizing your top line and bottom line
Why work with us?
DEDICATION
70,000+
Clients worldwide
Clients worldwide
INSIGHTS
83 Million
Businesses monitored in 160 countries
Businesses monitored in 160 countries
ASSURANCE
AA Rating
by Standard & Poor's
by Standard & Poor's
Contact Us
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can help your business with us.
Get answers to common questions
about Credit Insurance.
What is export credit insurance? Export credit insurance helps companies remain competitive by offering open terms when letters of credit or prepayment may have previously been the only safe way to do business. In fact, foreign companies buy an average of 40 percent more when they are offered open terms, according to the World Trade Organization. Export credit insurance providers protect your sales from political risks, including import/export changes and foreign government intervention. Few companies can effectively compete without extending credit to their buyers. For exporters, getting trade credit insurance levels the global playing field. Working with new countries means dealing with new cultures and new opportunities to access new markets and customers. Businesses must know to manage the associated credit risks that come with exporting products or services.