Webber Insurance Services Webber Insurance Services
Talk to an insurance broker

1300 932 237

Menu
  • Home
  • About
    • About Us

      Read more about our Business and Partners.

      Find out more about the team at Webber Insurance, what our clients say and who we partner with to enable us to provide you with superior insurance products.

      Contact Us
      • About Us
      • Webber Insurance Group
      • Steadfast Insurance
      • Testimonials
    • Close
  • Blog
    • Blog Posts & Ultimate Guides

      Read our latest blog posts plus get further information on key topics in our ultimate guide pages.

      At Webber Insurance, we work to expand our clients understanding of a wide range of business risk management topics

      Latest Blogs
      • Ultimate Guide – Data Breach Notification
      • The Ultimate Guide to Cyber Insurance
      • Data Breaches In Australia
    • Close
  • Products
    • Insurance Products

      We will find you the right insurance product for your business.

      Use a qualified Insurance Broker to ensure that you have an insurance program that is tailored to your specific needs.

      Quick Quote
      • Asbestos Liability
      • Building Indemnity Insurance
      • Business Insurance
      • Commercial Legal Protection Insurance
      • Contract Works Insurance
      • Contractors Insurance
      • Corporate Travel Insurance
      • Cyber Insurance
      • IT Liability Insurance
      • Management Liability Insurance
      • Plant & Equipment Insurance
      • Professional Indemnity Insurance
      • Public & Products Liability
    • Close
  • Occupations
    • Occupations

      We can source insurance for all kinds of occupations.

      As a specialist insurance broker, we have access to a range of local and overseas insurers who are capable of assisting with risks; large or small for all occupations

      Quick Quote
        • Accounting Insurance
        • Architect Insurance
        • Building Designer Insurance
        • Building Inspector Insurance
        • Consultants Insurance
        • Energy Raters Insurance
        • Engineers Insurance
        • Environment Consultant Insurance
        • Labour Hire / Recruitment
        • Project Management Insurance
        • Real Estate Agents
        • Tradesman Insurance
    • Close
  • Schemes
    • Schemes

      Insurance schemes for various occupations and industries.

      Webber Insurance has a number of insurance schemes that we have developed for specific industries and occupations.

        • ABSA TPA Assessors
        • Building Designer Association Australia (BDAA)
        • Building Design Queensland (Formerly BDAQ)
        • Building Designer Insurance
        • Design Matters National (Formerly BDAV)
        • Energy Raters Insurance
    • Close
  • FAQ’s
  • Get a Quote
    • Get A Quote

      We work to simplify the insurance process for our clients.

      Complete one of our online proposal forms today to receive a quote for your insurance requirements

      Get A Quote
      • Accountants
      • Architects
      • Asbestos Liability
      • Building Designer
      • Commercial Legal Expenses
      • Consultants
      • Contract Works – Annual
      • Contract Works – One Off
      • Corporate Travel
      • Cyber Insurance
      • Engineers
      • IT Liability
      • Management Liability
      • Plant & Equipment
      • Professional Indemnity
      • Project Manager
      • Public Liability
      • Real Estate Agent
      • Tradesman
    • Close
  • Claims
  • Contact
Webber Insurance Services Webber Insurance Services
Call Menu
  • Get a Quote
  • Make a Claim
  • Professional Indemnity Insurance
  • Products
    • Asbestos Liability
    • Business Insurance
    • Cyber Insurance
    • IT Liability Insurance
    • Contractors Insurance
    • Management Liability Insurance
  • Occupations
    • Accounting Insurance
    • Architect Insurance
    • Building Designer Insurance
    • Building Inspector Insurance
    • Consultants Insurance
    • Engineers Insurance
    • Energy Raters Insurance
    • Environment Consultant Insurance
    • Labour Hire & Recruitment Insurance
    • Real Estate Agents
    • Tradesman Insurance
  • Schemes
    • ABSA TPA Assessors
    • BDAA
    • BDAWA
    • Building Design Queensland
    • Design Matters National
    • Energy Raters Insurance
  • Contact
  • FAQ’s
  • About
    • Testimonials
  • Blog
    • The Ultimate Guide to Cyber Insurance
Aug 16
Trade Credit Insurance

The Benefits of Trade Credit Insurance

  • August 16, 2017
  • Chris Webber
  • Insurance News

What Is Trade Credit Insurance?

Many businesses operate by offering their goods and services on credit terms. This can result in a significant portion of their working capital being held as accounts receivable, therefore potentially jeopardising the cash flow and profits of the business.

Trade credit insurance protects your business against losses due to the insolvency or default of account customers in both Australia and overseas. Trade credit insurance can provide protection against:

  • Insolvency
  • Default
  • Political risks

Trade credit insurance can be used as a risk management tool to protect your business. For example, your business may suffer a number of ‘smaller’ bad debts from account customers which can usually be managed without causing a considerable amount of harm to your bottom line. The real risk lies in the large and unexpected losses arising from the failure of significant debtors which can be devastating to your business.

Having a Trade credit insurance policy in place will ensure that your business will continue to successfully operate despite the failure of payment from your debtors.

What Are The Benefits of Trade Credit Insurance?

1. Reduces risk of loss

Trade credit insurance provides a safety net against non-payment of invoices by domestic and/or international buyers. One of the largest, as well as the most at-risk of all your assets is your receivables.

2. Improves market penetration/sales growth

Credit insurance allows you to expand your business without any hassles. You can enhance the credit lines with your existing customers or offer more competitive terms of credit to the new buyers (open account terms). It provides a competitive advantage when it comes to exports.

3. Increases access to working capital finance

If your accounts receivables are covered under credit insurance, then export accounts receivable as well as concentrations of credit are included in collateral borrowing base calculations of the lender. This enables you to get cost effective working capital which in turn helps you to not only grow, but also avoid cash flow problems.

4. Helps manage credit risk

The insurer providing credit coverage often acts as a partner and helps to avoid credit losses. They also provide market intelligence which includes better insight into the financial viability of the buyers.

5. Helps to lower bad debt reserve

Trade credit insurance allows you to reduce your business’ bad debt reserve. It also helps to manage write-offs with more certainty. This in turn helps to improve earnings, financial ratios and shareholder equity. Premiums paid for credit insurance coverage are tax deductible.

6. Helps to avoid any unexpected impact on your business

For instance, the unexpected insolvency of one of your major customers could have a significant impact upon your business operations. Having a trade credit insurance policy can assist in identifying early warning signs of potential payment difficulties.

Trade Credit insurance therefore allows you to run your business with confidence and reduced risk. It also supports business expansion as you will be in position to serve more customers due to the competitive credit terms that you can now extend with enhanced working capital, increased borrowing power and better credit management.

For further information about Trade Credit Insurance, please contact us to discuss your requirements.

  • Facebook
  • Twitter
  • Tumblr
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail
blank

About The Author

Chris Webber is the Director of Webber Insurance Services. Chris has been in the insurance industry for almost 15 years and is an SME business insurance specialist. The information on this blog and website is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision. We recommend you consult a licensed insurance broker in order to assist you.

Comments are closed.

Recent Posts

  • Run Off Insurance… How Do I Get It & Do I Need It?
  • Building For The Future – Construction, Plant & Equipment Insurance
  • Corporate Travel Insurance: COVID-19 Cover Update
  • Daniel Webber Named Winner of 2022 Elite Broker Award
  • Advisr Insurance Broker Awards 2021 – Daniel Webber Named Finalist
  • Nikia Goers Announced as Young Professional Broker of the Year Finalist
  • Daniel Webber Named Elite Broker for 2021
  • Daniel Webber Named Advisr’s Top South Australian Insurance Broker of 2020
  • Changes To Registration Requirements For Business Use Drones
  • We’ve Moved! Webber Insurance Services Office Relocation

Contact us

  • Make an enquiry
  • Get a Quote
  • 1300 932 237
Webber Insurance Services
blankblankblank
  • Terms of Use
  • Privacy Policy
  • Financial Services Guide
  • Complaints & Disputes Handling
  • Code of Practice
© Copyright 2022 Webber Insurance Services

328A Magill Road, Kensington Park SA 5068

Webber Insurance Services Pty Ltd | ABN: 88 648 036 929 | CAR No: 413233

Authorised Representative of Webber Insurance Group Pty Ltd | AFSL: 488465 | ABN: 70 612 339 894 All rights reserved

Request Insurance Advice

Have a question or need advice from a qualified insurance broker?