When your business supplies goods or services on credit, unpaid invoices can have a significant impact on cash flow, profitability and your ability to continue trading.

Trade Credit Insurance can help protect your business against losses when a customer is unable or fails to pay what they owe.

Trade Credit Insurance protects businesses against the risk of customers failing to pay their outstanding invoices.

Cover can respond when a customer becomes insolvent or fails to pay an outstanding debt within the required period, helping protect your business against the resulting financial loss.

In simple terms, if your business provides goods or services now and allows customers to pay later, Trade Credit Insurance can help protect the money that is still owed to you.

Businesses regularly extend credit terms to customers as part of normal trading arrangements. While this can be important for winning and retaining business, it also means part of your business’s revenue can remain outstanding at any given time.

If a significant customer becomes insolvent or cannot pay, the effect can extend well beyond the unpaid invoice itself.

Trade Credit Insurance can help by:

• Protecting eligible accounts receivable against customer non-payment
• Reducing the financial impact of a customer insolvency
• Supporting more effective credit management
• Providing greater confidence when extending credit to customers
• Helping maintain cash flow and business continuity
• Potentially strengthening your position when seeking finance

Trade Credit Insurance can be suitable for businesses of many different sizes and industries.

It is particularly relevant if your business:

• Sells goods or services on credit terms
• Has a significant amount of money outstanding in its accounts receivable
• Relies heavily on one or several major customers
• Supplies customers where a single large bad debt could materially affect cash flow
• Operates in industries experiencing insolvency or payment pressures
• Is looking to safely expand its customer base or extend larger credit limits
• Wants greater certainty when entering new markets
• Has finance arrangements where the strength of its receivables is important

To get started, have the following ready:

• Completed Trade Credit Insurance Quick Quote Form
• Estimated insurable turnover for the next 12 months
• Bad debt history for the previous three years and current year
• Recent Aged Debtors / Aged Trial Balance
• Details of your 10 largest customers and credit exposures

If your business supplies customers on credit terms, speak with Webber Insurance about whether Trade Credit Insurance could form part of your risk management strategy.

To get started, complete the Quick Quote Form and provide the supporting information outlined above.