How does Trade Credit & Surety Insurance work?
An insurer conducts a credit assessment for each of your customers individually and sets a credit limit for each customer. The credit limit varies per customer and may be increased or decreased depending on the information gathered by the insurer through their extensive network of credit information suppliers.
Once the insurer finalises the assessment, you can trade against your customers approved credit limit. New credit limits can be applied for at any time during the period of the policy and existing credit limits can be increased.
Is there only one type of Trade Credit & Surety Insurance for all companies?
As a business solution provider, there are varied options available for you to choose from. You can customise an insurance policy that suits your company under the following categories:
What are the terms of the Trade Credit & Surety Insurance Policy?
During the lifetime of the policy, the insurer keeps track of this and will inform you of any changes to the financial health of your customers that may impact their ability to pay your company for the goods or services delivered.
Should your customer fail to pay you, you are insured up to 90% of the credit limit set and you may file a claim accordingly. If your customer is insolvent, you will receive payment from the insurer within 30 days upon their receipt of written evidence of the insolvency.