Frequently Asked Questions
Frequently Asked Questions about Trade Credit Insurance
Understanding the Product
Understanding the Product
Factoring involves selling your receivables to a third party (the factor), who takes ownership and advances you the funds immediately. Trade credit insurance does not lend you money — it compensates your losses if a client fails to pay. The two can coexist, but serve different purposes: immediate liquidity for factoring, loss protection for credit insurance.
Yes. In addition to commercial risk (insolvency, non-payment), policies also cover political risk: civil unrest, wars, embargoes, and currency transfer blockages. This makes it an essential tool for companies that export or have buyers in emerging or volatile markets.
A specialized broker like SecurCredit works for you — not for any single insurer. We compare offerings from the world’s leading credit insurers (Allianz Trade, Coface, Atradius, and others) to find the coverage best suited to your situation, at the best possible terms — at no extra cost to you. We also manage your ongoing insurer relationship: credit limit requests, claims, and renewals.
Cost & Value
Cost & Value
The premium is typically less than 0.5% of your covered B2B revenue. Measured against the real cost of a single significant bad debt — not counting collection time and cash flow impact — the value is generally very strong. Every situation is assessed individually. SecurCredit shops multiple insurers to get you the best terms.
Yes — and this is one of the most overlooked benefits. Insured receivables are far more attractive to financial institutions. Many companies use their credit insurance policy to secure better financing terms or increase their line of credit. At SecurCredit, we understand lender requirements and can structure your program accordingly.
Generally, yes — trade credit insurance premiums are treated as a deductible business expense. We recommend consulting your accountant to confirm the tax treatment based on your specific situation.
No. At SecurCredit, our compensation is a commission paid directly by the insurer — you pay no more than if you had negotiated directly. And in most cases, our negotiating power means you end up with better terms than you would have obtained on your own.
How It Works
How It Works
When a buyer fails to pay, your insurer first initiates the collections process. If collection fails or insolvency is confirmed, you file a claim. The insurer then pays you between 75% and 95% of the receivable, depending on your policy terms. Timelines vary by insurer, but most uncontested claims are settled within a few months of filing.
This is a legitimate concern. Insurers continuously monitor your buyers’ financial health — and if a risk is detected, a limit can be reduced or withdrawn. That said, this signal is also valuable intelligence: your insurer is alerting you to a potential problem before it becomes a loss. SecurCredit helps you navigate these situations and advocate on your behalf with the insurer.
Both options exist. A whole-turnover policy covers your entire customer portfolio — the most common and comprehensive approach. Some companies prefer selective coverage on high-risk buyers or specific export markets. We help you identify the structure best suited to your portfolio and business objectives.
Yes. Your credit manager handles day-to-day risk, but cannot absorb the financial loss of a major bad debt. Credit insurance complements their work — it is the safety net when management tools are no longer enough. The two are complementary, not interchangeable. In addition, the data provided by the insurer directly enriches your internal team’s work.
Eligibility
Eligibility
Absolutely. Solutions exist for businesses of all sizes, from SMEs to large multinationals. In fact, SMEs are often the most vulnerable to bad debts: a single defaulting client can seriously strain their cash flow. Credit insurance is designed precisely to balance this risk — and premiums are calibrated to your volume, not a fixed fee.
Both. A policy can cover your Canadian sales, your international sales, or both simultaneously. Export credit insurance policies add political risk coverage on top of commercial risk, which is particularly relevant for more volatile markets.
Travailler avec SecurCredit
Travailler avec SecurCredit
Un assureur vous propose sa solution. Un courtier indépendant met plusieurs assureurs en concurrence, négocie les conditions et vous représente quand une limite est refusée ou qu’une réclamation est contestée. La différence n’apparaît pas à la signature. Elle apparaît le jour où quelque chose ne va pas.
Le marché québécois compte un nombre restreint d’assureurs actifs en crédit commercial, et leurs appétits varient fortement selon le secteur, le pays et la période. Un même dossier peut recevoir des offres avec un écart de 40% d’un assureur à l’autre. Sans mise en concurrence, vous n’avez aucun moyen de savoir de quel côté de cet écart vous vous trouvez.
Notre rémunération provient d’une commission versée par l’assureur retenu. Vous ne payez aucuns honoraires additionnels pour l’analyse de votre portefeuille, la mise en marché de votre dossier, la négociation ou le soutien en cours d’année. Au final, cela ne vous coûte rien et vous bénéficiez de tarifications plus avantageuses que si vous aviez démarché par vous-même.
Ce ne sont pas des concurrents: ce sont parfois des fournisseurs, d’autres fois des outils différents pour viser l’atteinte de vos objectifs. EDC couvre principalement le risque à l’exportation. Enfin, elle offre surtout des garanties de financement. Les assureurs privés couvrent quant à eux l’ensemble du portefeuille (domestique et exportation) sous une seule police, avec surveillance continue des acheteurs.
Le meilleur montage combine parfois les deux univers, et le choix dépend de la structure de vos ventes, de vos marchés et de vos besoins de financement. Nous travaillons avec les deux. Un courtier qui écarte systématiquement l’un ou l’autre vous en dit davantage sur ses priorités que sur votre dossier.
Oui, et c’est souvent le point de départ. Une revue de police compare vos conditions actuelles au marché: tarification, quote-part, franchise, délais de paiements, exclusions, avenants. L’exercice prend généralement moins de deux semaines et ne vous engage à rien.
La mesure la plus révélatrice est aussi la plus rarement examinée: votre taux d’acceptation réel sur les demandes de limite de crédit. Une police au taux imbattable qui refuse le tiers de vos demandes vous coûte infiniment plus cher qu’une police correctement tarifée qui les accepte. Le prix se lit sur la facture. La performance se lit dans les décisions de souscription.
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