Trade credit insurance in simple terms is an effective financial risk management tool that safeguards your company against losses sustained arising from non-payment of trade related debts. Credit insurance policy covers you from commercial risks, arising from defaults or delays.

Further credit Insurance ensures that your company is not unfavorably affected by the unforeseen failure of one or more of your customers. This is actually the right tool to help you manage your credit risks.

So, to get a more concrete view here is a rundown to the trade credit insurance coverage.

What does the trade credit policy help you with? The credit insurance policy enables you to get access to a hefty coverage, which allows you to keep payment risks at bay. Basis the terms of the trade credit policy the credit insurer will offer you a cover that takes into consideration a portfolio of your buyers. So, when some problem arises they readily pay you an agreed percentage of an invoice or receivable that remains unpaid as a result of insolvency, bankruptcy or protracted default at your customer’s end. This allows you to function without a pause and helps keep your business afloat.

What are the marquee benefits of the trade credit insurance coverage?

  • Stay put and enjoy growth in sales: With credit Insurance, you can boost your sales by offering satisfactory credit terms to defaulters or prospects and you can also avoid the hassle of using letters of credit in case you are dealing with international clients.
  • Gain immense cash flow relief: With trade credit insurance coverage in hand you can gain immediate cash flow relief, and use the funds from your policy when the people you are doing business with becomes insolvent or are unable to pay bills on time. Losses can be indemnified, allowing your business to maintain its cash flow.
  • Access additional funds if need be: Having a trade credit insurance coverage is extremely viable as lenders and financial institutions will readily help you get some financial support in case you need to pump in cash to your business and are awaiting trade receivables. The credit insurance policy creates credibility for you.

What factors rule the policy terms and premium? Generally, the premium for trade credit insurance in India is based on your company’s yearly turnover and credit risk of yours buyers. So, your agent, specifically accesses your trade dealings and buyer profile to arrive at a perfect figure and once the amount is decided you can receive protection up to an agreed percentage of any losses sustained against late payment or the failure to pay by your buyers.

What does the credit insurance policy cover? The trade credit insurance in India has been planned to refuge you against the commercial risks of your buyer or customer’s default. The causes of loss covered under this policy are: Insolvency, Protracted Default or when your buyer fails to pay your dues within a pre-defined period you both had mutually agreed for. What’s more, the trade credit insurance coverage also gives you protection against political risks, which may arise owing to a war or natural disaster or unplanned changes in import/export guidelines.

All in all, your decision to invest in trade credit insurance coverage will immensely help your businesses, so that you can continue empowering your manufacturing or supply chain work, without having to worry about losses owing to payment delays. At Akshar, we are a team of highly-experienced trade credit insurance brokers. We foresee the trends of the industry and always stand by you as your pillar of strength. Every business needs economic stability and dues can lead to faulty nodes. So, to help improve economic stability and your business standing, we address trade losses arising due to payment risks.

But, more than anything else we would like to call ourselves trade credit insurance claims expert and we can easily get you claims for the toughest of cases, without any lags. We do not just plan and sell you a trade credit insurance policy but, we at Akshar become your business manager and stand by your side till the time your claim is accepted and you are relieved.

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