Trade credit insurance has one simple aim:
“Support your Business when a Customer fails to pay a Trade Debt”
Trade Credit Insurance also known as Credit insurance is a risk management tool that covers the payment risk resulting from the delivery of goods or services.
Credit insurance provides your business with protection against the failure of a customer to pay their trade credit debts. Under this policy credit insurer usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of insolvency, bankruptcy, or protracted default. This can arise as a result of your customer becoming insolvent or because your customer fails to pay withing the agreed credit period. These risks are referred to as commercial risks. The protection covers as standard goods or services sold and delivered but can be tailored to cover many other risks such as work in progress and binding contracts.
The insurance indemnifies a proportion upto 85% of the debt owed to you. Also, you should have traded within the limit the insurance companies approve for that particular customer.
At ALTIUS, our main aim is to insure businesses - from SMEs to Multinationals – against unpaid invoices, which can undermine their profitability. We offer a range of CREDIT INSURANCE solutions to secure your sales, finance, business development, and also covers all your contracts and B2B transactions done in India and across the Globe in any of the countries, covering almost 150+ countries worldwide.