Solution
Trade Credit Insurance
Extending credit to customers helps businesses grow but carries risk; unpaid invoices can put pressure on cash flow, profitability and future growth. Trade Credit Insurance helps protect your business while giving you greater confidence to trade.
When customer payments become a business risk
Offering credit terms is often essential for winning and retaining business. But when customers pay late or fail to pay altogether, the impact can extend far beyond a single invoice. Customer payment risk can affect cash flow, growth plans and the confidence to make important commercial decisions.
The challenges businesses face
Extending credit creates opportunities for growth, but it also introduces financial risk. Common challenges include:
Cash flow pressure
Late or unpaid invoices can disrupt cash flow and make it harder to manage day-to-day operations.
Growth constraints
Concerns over customer payment risk may limit your confidence to win new business or enter new markets.
Limited visibility
Making informed credit decisions can be difficult without access to reliable information about your customers’ financial position.
Trading internationally
Expanding into overseas markets can introduce additional risks, including political uncertainty and differing payment practices.
Customer concentration
When a significant proportion of your revenue depends on a small number of customers, a single non-payment can have a greater financial impact.
Bad debt
Customer insolvency or prolonged non-payment can reduce profitability and divert resources away from future investment.
Cover designed around how you trade
Whole Turnover
Single or Multi Buyer
Excess of Loss
International & Multinational
Non-Cancellable Cover
Specialist Trade Credit Solutions
Deep experience you can rely on
Combining local expertise with global capability, our Trade Credit specialists work with you to understand your business, identify the right solution and provide ongoing support as your needs evolve.
- Specialist Trade Credit expertise
- Access to UK and international insurers
- Advice tailored to your business
- Ongoing support, including claims assistance where needed
Here to help
Frequently asked questions
What is Trade Credit Insurance?
Trade Credit Insurance protects your business against the risk of bad debt from non-payment or insolvency. Whether you sell goods or services, this type of cover gives you the confidence to offer credit terms to your customers, knowing you’ll still get paid even if something goes wrong.
From UK SMEs to large multinationals, we work with a wide range of businesses to arrange policies that suit your size, sector and trading relationships.
What is Bad Debt Protection?
Bad Debt Protection is different to Trade Credit insurance.
Bad Debt Protection (BDP) is a form of cover typically offered by banks or invoice finance providers, often bundled alongside a facility such as invoice factoring. Rather than protecting your whole customer base, it’s designed to safeguard a specific, pre-agreed set of debtors or invoices tied to that facility.
If one of those approved customers fails to pay, BDP will compensate you for the loss. However, cover doesn’t extend much beyond that: it won’t give you ongoing intelligence on buyer risk, and it typically offers little protection against broader trading threats, such as political or economic instability affecting overseas markets.
In practice, BDP is reactive by nature — it steps in aer a named debtor defaults, rather than helping you anticipate or manage risk across your customer base more widel
What types of businesses need Trade Credit Insurance?
Any business that offers goods or services on credit terms can benefit. It’s particularly valuable for companies with a few key customers, or those trading internationally.
How can Trade Credit Insurance benefit my business?
- Improves Cash Flow – Protect your business against fluctuations in cash flow caused by bad debts and unpaid invoices.
- Facilitates Growth – Trade confidently with new customers and increase trade with existing customers.
- Enhances Profitability – Increase exposure to customers safe in the knowledge that this risk is protected.
- Delivers Vital Insight – Avoid bad debts with in-depth information on your customers and markets to support your credit management and enable the business to make informed decisions.
- Creates a Competitive Advantage – Trade at higher volumes on open credit terms compared to your competitors.
- Provides Funding – Access finance and funding opportunities.
