Trade Credit insurers need information about the business’s customers and debtor exposure to determine the structure and price of the cover.

What business information is normally required? #

This can include:

• Business name and ABN.
• Business activities.
• Annual turnover.
• Expected turnover for the next period.
• Domestic and export sales.
• Years in business.

What debtor information may be required? #

Insurers may ask for:

• Total credit sales.
• Aged debtor reports.
• Largest customers.
• Maximum exposures.
• Customer locations.
• Overseas customers.
• Current payment terms.
• Average payment experience.
• Debts currently overdue.

For larger or concentrated exposures, the insurer may need the names and amounts relating to major customers.

What claims information is required? #

You may need to provide details of:

• Previous bad debts.
• Customer insolvencies.
• Debt write-offs.
• Current collection matters.
• Previous Trade Credit claims.

What credit management information may be requested? #

This can include:

• How new customers are assessed.
• Internal credit limits.
• Collection procedures.
• Maximum payment terms.
• How overdue accounts are managed.

Providing an accurate debtor profile helps determine whether whole-turnover, selected-customer or another Trade Credit structure is appropriate.