Any business extending payment terms to other businesses is effectively acting as a lender, and carrying the risk that comes with it. Trade credit insurance exists specifically to cover that exposure.
Trade credit insurance protects a business against the risk of a customer failing to pay an invoice, whether due to insolvency, protracted default, or in some policies, political risk affecting an overseas buyer's ability to pay.
Why this matters more than it seems: A single large unpaid invoice can be enough to seriously damage a small or mid-sized business's cash flow, particularly if that customer represents a significant share of revenue. Trade credit insurance transfers that concentration risk to an insurer.
Many trade credit policies include ongoing credit assessment of your customer base as part of the service, insurers monitor buyer creditworthiness continuously, which can act as an early warning system before a customer becomes a real problem, not just a payout after the fact.
Any business extending 30, 60, or 90-day payment terms to other businesses, particularly where a small number of customers represent a large share of revenue, exporters trading with overseas buyers, and businesses whose bank or investors require credit insurance as a condition of lending against receivables.
Free, no obligation. We compare quotes from insurers who specialise in this exact line of cover.
See My Cover Options →Cover terms, credit limits and exclusions vary by insurer and customer risk profile. Always confirm specific buyer coverage before extending significant credit terms.