Trade credit and surety
Make sure every sale on credit is paid, not just invoiced.
- Customer monitoring
- Continuous
- Debt recovery
- Handled by the insurer
- Exports
- Covered
Trade credit insurance covers non-payment of your credit sales, but it does something even more useful: it monitors your customers' creditworthiness before you supply them. And if non-payment occurs, the insurer pays out and handles debt recovery, without you having to break off the business relationship.
The collection cycle
How it works in practice.
Credit sale
Trade credit insurance covers non-payment of your credit sales, on both domestic and export transactions.
- Cover for domestic and export transactions
Terms
In practice
You want to fulfil a large order for a new customer.
You request a credit assessment and the insurer tells you the credit limit it will cover for that customer.
Customer credit assessment
The insurer monitors your customers' creditworthiness before you supply them, and keeps doing so while you sell to them.
- Assessment and monitoring of your customers' creditworthiness
In practice
A regular customer starts paying late.
The insurer monitors their creditworthiness and may reduce the limit before the risk increases.
Non-payment
If non-payment occurs, you file it as a claim and the insurer takes over.
- Compensation for unpaid B2B invoices
Terms
In practice
The debt becomes definitively unpaid.
You file the claim; the insurer handles debt recovery and pays the agreed percentage.
Compensation and recovery
The insurer pays out and handles debt recovery, without you having to break off the business relationship.
- Compensation for unpaid B2B invoices
- Debt recovery handled by the insurer
And the cycle continues
With the insurer's information on each customer, you decide who to keep selling to on credit, and for how much.
What an unpaid invoice really costs
An unpaid invoice is not offset by its amount alone: you need to sell enough to generate that margin again.
What it includes.
More than compensation: insight into your customers.
- Compensation for unpaid B2B invoices
- Assessment and monitoring of your customers' creditworthiness
- Debt recovery handled by the insurer
- Cover for domestic and export transactions
- Guarantees and surety bonds for clients and public authorities
- Improved access to bank financing
Trade credit insurance terminology.
- Credit assessment
- The insurer's analysis of each customer to decide whether to cover them.
- Credit limit
- The maximum amount the insurer covers for a specific customer.
- Extension
- A payment extension that should be reported so as not to lose cover.
- Percentage of cover
- The share of the unpaid debt that the insurer pays out.
Frequently asked questions.
Does it cover all my customers?
The insurer assesses each debtor and assigns a limit. Creditworthy customers are covered for their amount; doubtful ones receive a reduced limit or no cover, which is valuable information in itself.
Can I insure only my large customers?
Selective policies are available, although the premium is usually higher. We assess this based on your specific portfolio.
How long does it take to get paid after a default?
It depends on the policy wording and the type of transaction; it usually takes between two and five months from when the claim is filed.
Send us your customer portfolio and we will tell you what the insurer would cover.
A business adviser will call you during office hours.
