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Trade Credit Insurance

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Trade Credit Insurance protects your business against the risk of customers failing to pay for goods or services provided on credit terms.
This cover applies to both domestic and international trade and provides protection against events such as customer insolvency, protracted default (delayed payment), and for exporters, contract repudiation and political risks.

Most policies cover up to 90% of the invoice value, with flexibility to increase or decrease coverage depending on your business requirements. Many insurers also provide debt collection support as part of the policy.
Trade credit insurance is not a one-size-fits-all solution. Policies can be tailored to suit your business, with pricing typically based on factors such as your industry, annual turnover, history of bad debts, the creditworthiness of your customers, and your internal credit procedures.
When trading on credit terms, you are effectively providing your customer with an unsecured loan.
It’s worth considering the following:
  • What would happen to your business if one of your customers defaulted?
  • How do you assess the creditworthiness of your customers?
  • What processes do you follow when accounts become overdue?
  • How do you monitor the credit risk of your debtor ledger?
  • Would you like the confidence to increase sales?
  • Would access to new markets benefit your business?

Benefits of Trade Credit Insurance

Protect Cash Flow
Bad debts can have an immediate and long-term impact on your business. Trade credit insurance helps maintain cash flow by providing a claim payment when a covered debt becomes unrecoverable.
Preserve Your Profit
On average, around 40% of a business’s value sits within its debtor ledger. Protecting this asset can improve financing arrangements, support lender confidence, and in some cases help remove personal guarantees.
Confidence to Expand
Trade credit insurance allows you to take on new customers, enter new markets, or extend higher credit limits with confidence, knowing you are protected if a buyer fails to pay.
Improved Credit Management
Even with strong credit procedures, businesses may not always know when a customer is experiencing financial difficulties. Trade credit insurers provide valuable market intelligence and early warning indicators, helping you make informed credit decisions.

Policy Options

Trade credit insurance can be structured in several ways depending on your exposure:

Whole of Turnover
Provides protection against non-payment from all customers, covering domestic sales, export sales, or both.

Key Accounts
Covers your largest or most critical customers whose default would have the biggest financial impact on your business.

Single Buyer
Designed for businesses heavily reliant on one major customer, providing protection against that buyer defaulting.

Transactional Cover
Protects individual transactions and is often suitable for businesses with limited sales or one-off large contracts.

Solutions for SMEs

There are also simplified trade credit products designed specifically for small and medium-sized businesses, making protection accessible even for companies with smaller turnover or fewer debtors.

Industries Commonly Covered

Each insurer has different risk appetites, but trade credit insurance is commonly used across industries such as:
  • Construction
  • Agriculture
  • Exporting
  • Viticulture
  • Marketing & Media
  • Technology
  • Food & Beverage
  • Clothing & Retail
  • Manufacturing
  • Transport & Logistics

Is Trade Credit Insurance Right for Your Business?

We are a member of the Insurance Council of NZ and adhere to the Fair Insurance Code, which provides you with assurance that we hav

If you trade on credit terms, trade credit insurance can provide valuable protection for your cash flow, profits, and growth plans.

Get in touch with our trade credit specialist Ben to learn how trade credit insurance can support your business.e high standards of service to our customers.
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