Safeguard Your Business with Trade Credit Insurance

Trade credit insurance is a solution that protects companies against the risk of unpaid customer debt, late invoice payment and customer insolvency.Should non-payment occur, the trade credit insurer steps in, providing an indemnity to alleviate the impact of the loss. In essence, it functions as insurance against non-payment for businesses.

Business credit insurance provides 3 vital services to ensure you avoid the risk of customer non-payment: Prevention of unpaid debts including monitoring your debtors; collection management; and – most importantly – indemnification if the customer fails to pay.

Credit insurance means you can prospect with peace of mind without worrying about customers who default. It also help you to secure new financing because banks feel reassured by business credit insurance for their clients.

Collecting or managing overdue receivables becomes a thing of the past – guaranteed. When you are covered by trade credit insurance, the only risk of not being paid is if your customer challenges the conformity of the delivery (or the service provided).

Yes: a credit insurance contract is a guarantee against non-payment by your customers or customer insolvency who are being monitored and for all undisputed invoices. The information supplied by the trade credit insurer keeps bad debtors away from buyers who are being monitored. 

You submit a request for your customers to be monitored, leaving you to rest easy once trade credit insurer have granted the guarantee: trade credit insurer will come back to you if there is a downturn in your customer's solvency. You make your sales without any intervention from the trade credit insurer. In the event of non-payment, you provide the information to the insurer and they take over the collection process there and then – whether it’s in South Korea or on the other side of the world. 

If these steps are not successful after a time frame agreed in the contract, the compensatory indemnity is paid to you. Everything happens online.  Monitoring and an overdue notification, that’s all… with potentially hundreds of invoices guaranteed as a result.

If you are a small business with a maximum turnover of USD 10 million, a trade credit insurance solution is made for you: it’s a simple credit insurance contract at an all-inclusive price that starts at USD 3,000  a year.

Supplier credit insurance is also called business credit insurance, customer credit insurance, credit risk insurance, bad debt insurance or simply: credit insurance. This type of contract protects you against the risk of non-payment. In a sense it is customer non-payment insurance for businesses.

Export credit insurance is another term to describe trade credit insurance, but specifically refers to covering your export credit. COFACE Group, through its insurance company partners in South Korea and worldwide, offers simple and flexible credit insurance products that are tailored to fit your size, sector and business ambitions.
 

If your client is pleading a commercial dispute to avoid paying you, the trade credit insurer will check that they are not acting in bad faith in order to conceal their inability to pay. If the dispute is real and bona fide, the trade credit insurer will simply suspend our collection process while we let you settle the dispute within the context of your customer-supplier relationship. The guarantee is reactivated once the dispute has been resolved, and the invoice can be indemnified if the customer is unable to settle it.