Selling your products and services on open credit terms can help you gain a competitive edge in the marketplace. However, it can also expose you to your customers’ financial difficulties. Consequently, your business incurs credit risk every time you extend credit to your customers. Although Accounts Receivables are typically a company’s most liquid and valuable assets they are also among the most unprotected assets. Trade credit insurance protects a company’s commercial accounts receivables from customers that are unwilling or unable to pay for products or services rendered due to insolvency, catastrophe, or political events.
Whether you sell within your town or around the world, credit insurance helps ensure that you will be paid for merchandise or services delivered to your customers. A trade credit insurance policy is a guarantee that you will be paid, subject to the terms and conditions of the policy, for the merchandise shipped or services rendered to your customers. By assuring payment, credit insurance can strengthen your company’s balance sheet and enhance your borrowing power, giving you the piece of mind to concentrate on growing your business.
TRADE CREDIT INSURANCE PROTECTS AGAINST:
- Unforeseen credit loss(es) in accounts receivable
- Insolvency (Chapter 7 or 11 or international equivalent)
- Protracted Default (slow pay delinquency)
- Political Risks (Government Moratorium, Contract Frustration, Discharge of Debt, War, Transfer, Public Buyer Default)
As a leading insurance brokerage, HUB International Northeast has strong relationships with all of the top rated Credit Insurance carriers. Our Trade Credit team leader, Michael Lee, has been working in the trade credit and political risk industry since 1997. Michael has an extensive knowledge of trade credit, structured finance and political risk products. Additionally, he has experience in providing expert advice to clients about other products and services, such as collections, trade financing options and credit risk analysis.
We understand that each business is unique. Our specialist will work with you and the insurance carrier to customize the policy to your particular needs. We will assist in establishing the structure that is consistent with your needs and requirements for protecting your domestic and export accounts receivable. With this protection in place, you can be assured that your accounts receivable sold on open credit terms will be paid by the trade credit insurer, within the terms and conditions of the policy, if your customer does not.