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Trade credit insurance

Tackling Business Uncertainties with Trade Credit Insurance 

25 March 2024

Trade Credit Insurance (TCI) can be a vital tool for businesses, offering robust protection and ensuring that a company’s cash flow remains uninterrupted.

Trade credit insurance

In the dynamic and unpredictable economic landscape of 2024, businesses face a variety of challenges. From supply chain disruptions to escalating inflation and fluctuating consumer confidence, the search for stability and growth in the business world is challenging. Trade Credit Insurance (TCI) can be a vital tool for businesses, offering robust protection and ensuring that a company’s cash flow remains uninterrupted.

What is Trade Credit Insurance?

Trade Credit Insurance covers businesses in case customers fail to pay debts or pay later than agreed. It provides protection against credit risks such as protracted default, insolvency or bankruptcy. If a customer defaults on a payment, the insurance policy compensates the business for the outstanding amount.

The Benefits of Trade Credit Insurance

  • Access to Information – Policyholders gain access to detailed information on their customers before agreeing credit terms or increasing exposure.
  • Growth Enabler – By protecting cash flow, TCI enables businesses to grow and explore new opportunities.
  • Achieve peace of mind – Companies can pursue new ventures or expand their dealings with existing customers, knowing that business is protected against the potentially devasting impact of a significant bad debt.

Who has Trade Credit Insurance?

Policies can be tailored to suit most businesses, with cover adjusted to factor in industry, customer base and risk tolerance. TCI is not limited to specific industries. From technology firms to textile manufacturers, any business that sells goods or services on credit terms can benefit from Trade Credit Insurance.

SMEs often face higher risks due to their limited resources and customer base. TCI helps protect them against non-payment by customers, ensuring their cash flow remains stable. These businesses can benefit from TCI’s access to information and expert guidance on trade matters

For example, an electrical wholesaler turned to Bartlett after facing challenges with bad debts. Our expertise in business insurance solutions not only covered the wholesaler’s entire ledger but also included an all-encompassing debt collection service. This strategic move enabled the business to confidently grow and expand without the overheads of external debt collectors.

Even large companies with substantial turnovers benefit from TCI. They can use it to safeguard against credit risks associated with significant transactions, especially when dealing with international trade partners.

International Businesses and companies engaged in cross-border trade find TCI indispensable. It covers risks related to global transactions and whether exporting or importing, international businesses use TCI to mitigate payment uncertainties.

For businesses striving to navigate today’s complex economic environment, credit insurance can offer a pathway to stability and growth.