Trade credit insurance
for driving growth and managing accounts receivable
Trade credit insurance
for driving growth and managing accounts receivable.
Did you know that companies using trade credit insurance boast higher sales volumes? Take advantage of the leverage effect of an appropriate accounts receivable insurance strategy.
Take control of your accounts receivable
To safeguard your profitability, cash flow and shareholder equity, talk to SecurCredit about trade credit insurance.
Tap into our team’s extensive knowledge of different modes of financing and options offered by partner financial institutions and insurers. We are skilled in developing credit insurance programs that satisfy lender requisites and align with your business objectives.
More than protection:
A means of driving growth
Credit and political risk insurance do more than just protect you against the risk of non-payment. They provide you with financial means consistent with your ambitions!
Fast-track access to a broader range of financing options
In need of additional funds to sustain growth? Experiencing reticence on behalf of lenders? The protection provided through credit insurance could prove advantageous in dealings with them. Use credit insurance to consolidate your financial position and enhance relations with lenders.
Set the stage for more vigorous growth
Credit insurance enables you to grow your sales safely and securely with new or existing customers. By offering them more flexible terms and conditions of payment, you will be able to boost your sales without augmenting your risk levels, even in unpredictable, volatile market conditions.
Maximize your
commercial potential
When you collaborate with credit experts active in all sectors of industry across the globe, you enjoy access to critical, trusted information about your customers, allowing you to make enlightened decisions, take full advantage of the promising opportunities available to you, and forego those deemed less advantageous.
Protect against political risk
For businesses active internationally, unforeseen changes in legislation or political instability can pose severe threats to your operations. Political risk insurance protects your commercial activities in other countries, enabling you to grow your business with confidence.
10 raisons de communiquer avec SecurCredit
pour gérer vos risques de crédit
- Vous dégagez de petites marges bénéficiaires
- Vous faites face à un niveau d’endettement élevé
- Vous cumulez des encours importants avec certains clients
- La pression est forte sur votre flux de trésorerie
- Vos mauvaises créances sont importantes
- Vous avez besoin d’améliorer la gestion des comptes-clients
- Vos équipes qui gèrent la police d’assurance-crédit auraient besoin d’accompagnement
- Vous avez l’ambition de croître plus rapidement
- Vous avez des difficultés à obtenir les approbations de crédit avec votre assureur actuel
- Certains de vos clients requièrent plus de crédit
All you need to know about trade credit insurance
What is trade credit insurance?
Trade credit insurance, also known as commercial credit, accounts receivable or export credit insurance, is a type of insurance that provides businesses with protection against the risk of non-payment of commercial debt. Trade credit insurance is used in the context of commercial transactions between businesses where one business provides goods or services to another on credit.
Coverage aims to safeguard against financial loss owing to the inability of a customer or customers to honour their payment obligations as a result of financial difficulties, bankruptcy or other unforeseen circumstances. The credit insurer regularly assesses customer solvency and provides updates on customer capacity to honour financial commitments. In instances of default on payments owing, the insurer compensates the insured business, thereby safeguarding the latter’s financial health.
Trade credit insurance plays a key role in enabling businesses to manage risks relating to commercial operations, explore new markets and boost customer relations, while sustaining an acceptable level of financial security.
Coverage aims to safeguard against financial loss owing to the inability of a customer or customers to honour their payment obligations as a result of financial difficulties, bankruptcy or other unforeseen circumstances. The credit insurer regularly assesses customer solvency and provides updates on customer capacity to honour financial commitments. In instances of default on payments owing, the insurer compensates the insured business, thereby safeguarding the latter’s financial health.
Trade credit insurance plays a key role in enabling businesses to manage risks relating to commercial operations, explore new markets and boost customer relations, while sustaining an acceptable level of financial security.
Why does my business require trade credit insurance coverage?
Your business should avail itself of trade credit insurance coverage for a number of important reasons.
Reduce financial risk: Accounts receivable insurance protects your business against the risk of non-payment by customers. If one of your customers should be unable to pay owing to financial difficulties, bankruptcy or other unforeseen circumstances, your insurer can cover the unpaid debt.
Safeguard cash flow: By minimizing the risk of non-payment, you ensure that your cash flow remains more stable and more predictable, leaving you better poised to plan your operations, manage your finances and invest more dynamically.
Expand sales: Export credit insurance enables you to explore new markets at home and abroad with confidence. You will be able to make enlightened decisions respecting business opportunities without the fear or risk of non-payment.
Enhance customer relations: By offering customers more flexible terms of payment, you can enhance customer relations and boost customer loyalty.
Reduce financing costs: Financial institutions generally consider trade credit insurance as supplemental insurance on a company’s receivables, which can raise your credit profile and potentially reduce financing costs.
Manage credit risks proactively: By regularly assessing customer solvency, credit insurers enable you to make enlightened credit decisions and implement measures intended to reduce credit-related risks.
In short, trade credit insurance forms the basis of an intelligent, dynamic financial strategy for safeguarding your business against the risks of non-payment, fostering growth and sustaining financial stability.
Reduce financial risk: Accounts receivable insurance protects your business against the risk of non-payment by customers. If one of your customers should be unable to pay owing to financial difficulties, bankruptcy or other unforeseen circumstances, your insurer can cover the unpaid debt.
Safeguard cash flow: By minimizing the risk of non-payment, you ensure that your cash flow remains more stable and more predictable, leaving you better poised to plan your operations, manage your finances and invest more dynamically.
Expand sales: Export credit insurance enables you to explore new markets at home and abroad with confidence. You will be able to make enlightened decisions respecting business opportunities without the fear or risk of non-payment.
Enhance customer relations: By offering customers more flexible terms of payment, you can enhance customer relations and boost customer loyalty.
Reduce financing costs: Financial institutions generally consider trade credit insurance as supplemental insurance on a company’s receivables, which can raise your credit profile and potentially reduce financing costs.
Manage credit risks proactively: By regularly assessing customer solvency, credit insurers enable you to make enlightened credit decisions and implement measures intended to reduce credit-related risks.
In short, trade credit insurance forms the basis of an intelligent, dynamic financial strategy for safeguarding your business against the risks of non-payment, fostering growth and sustaining financial stability.
What does trade credit insurance cover?
Trade credit, commercial credit or accounts receivable insurance covers financial loss owing to late or non-payment by customers for goods and services provided them on credit. Coverage may extend to the following:
Non-payment: If one of your customers should be unable to pay amounts owing as a result of financial difficulties, insolvency or bankruptcy, trade credit insurance can compensate you for unpaid receivables.
Late payment: If your customers consistently fail to honour the agreed terms of payment, trade credit insurance can cover outstanding receivables.
Political risk: In the instance of international sales, export credit insurance can also cover credit risks associated with political events such as civil unrest, embargoes or trade restrictions impeding payment.
Insolvency: If a customer declares bankruptcy or is declared insolvent, coverage can protect your business against any resulting financial loss or losses.
It is important to bear in mind that coverage varies based on the type of insurance contract and the terms negotiated with your insurer. Hence we recommend that you seek the support and advice of a broker specializing in trade credit insurance to ensure that you receive coverage tailored to your needs and business objectives.
Non-payment: If one of your customers should be unable to pay amounts owing as a result of financial difficulties, insolvency or bankruptcy, trade credit insurance can compensate you for unpaid receivables.
Late payment: If your customers consistently fail to honour the agreed terms of payment, trade credit insurance can cover outstanding receivables.
Political risk: In the instance of international sales, export credit insurance can also cover credit risks associated with political events such as civil unrest, embargoes or trade restrictions impeding payment.
Insolvency: If a customer declares bankruptcy or is declared insolvent, coverage can protect your business against any resulting financial loss or losses.
It is important to bear in mind that coverage varies based on the type of insurance contract and the terms negotiated with your insurer. Hence we recommend that you seek the support and advice of a broker specializing in trade credit insurance to ensure that you receive coverage tailored to your needs and business objectives.
What is political risk insurance?
Political risk insurance is a type of specialty insurance the object of which is to protect businesses against financial losses owing to unforeseeable political or economic risks associated with international transactions or investments in markets abroad. These risks may relate to situations such as political troubles, armed conflicts, nationalizations, expropriations, embargoes, trade restrictions or other events of a political nature as impede normal business operations.