Trade Credit Insurance can be relevant to businesses that provide goods or services to customers on credit rather than requiring payment in advance.

When can Trade Credit Insurance be particularly useful? #

Businesses may consider the cover where:

• Significant amounts are held in trade debtors.
• A small number of customers represent a large proportion of revenue.
• Customers receive extended payment terms.
• A major customer failure could affect cash flow.
• The business is expanding into new markets.
• The business exports goods or services.
• Banks or financiers place importance on the debtor book.

Does the business need to be large? #

No.

The potential need for Trade Credit Insurance depends more on the size of the credit exposure than the overall size of the business.

A smaller business can have a significant exposure if one large customer owes it a substantial amount.

What industries can use Trade Credit Insurance? #

It can be relevant across many B2B industries, including:

• Manufacturing.
• Wholesale.
• Construction supply.
• Distribution.
• Professional services.
• Recruitment and labour hire.
• Transport and logistics.
• Food and beverage supply.
• Technology.
• Export businesses.

The insurer’s appetite and policy structure depend on the customers, industry and credit terms involved.