Trends & Insights

10 Reasons to Insure

By: Kathy FarleyDate:
Umbrella Coverage

Less than 15% of all U.S. companies use trade credit insurance…

 

Companies who use trade credit insurance are better prepared to meet unpredictable obstacles that may arise. Political issues involving international trade, bankruptcy and protracted default are among the many challenges that trade credit insurance protects against. Suppliers can rest easy knowing that Atradius carries the weight of monitoring payment practices, creating efficiency in the credit management process and helping companies focus on what’s most important — growing their business.

There are many reasons why companies should consider insuring their receivables, but these 10 rise to the top:

      1. The number one benefit to trade credit insurance is that it allows companies to grow their business safely. With trade credit insurance, suppliers can feel confident offering open credit terms to their buyers, knowing that payment is guaranteed. Buyers are looking for flexibility and companies who are insured by Atradius bring a competitive edge to the market by offering the payment terms buyers want.
      2. Most things in life are unpredictable, as we just experienced with the events in 2020. The black swan event of the COVID-19 pandemic proved to the business world that having a proactive approach to the uncertainties in trade is critical. Protection is an important facet to trade credit insurance, protecting companies from insolvencies and further preventing any catastrophic losses. Insolvencies have seen an all-time high due to the pandemic and the companies insured by Atradius were better prepared against the economic fallout of COVID-19.
      3. It can be overwhelming to monitor the credit risks that your customers are facing, especially if you are focused on growing your business and cannot invest the time to monitor customers 24/7. With trade credit insurance you have credit management support. With a team at Atradius working efficiently for you, you can focus on the day-to-day business at hand while having complete access to Atradius’ innovative online tools that provide real time insights on any company’s risk rating. Businesses can once again focus on making their company successful without wasting time monitoring customer risk.
      4. When it comes to insuring your accounts receivable, one thing is for sure: banks love trade credit insurance. Banks tend to be more favorable with their lending terms when companies are backed by trade credit insurance. This means you can offer more flexible payment terms to customers with accounts receivable covered by the banks. Financing is an important reason you should insure, and Atradius makes it possible.
      5. Going international with your business is no easy feat. Currency exchanges, language barriers and overall difficulty in accessibility can make expansion abroad difficult. Atradius is an international company, with offices in more than 50 countries. With one foot in the U.S. and the other in the country you’re hoping to do business with, Atradius can open the doors to expanding your business into new territories. The possibility of new market expansion is a reason to consider insuring your receivables and it opens, quite literally, a world of possibility.

    1. In this constantly evolving technological world, speed and digitalization are more important than ever. When a business is insured by Atradius, they have around the clock access to analytics on their current and potential customers and can decide to offer credit terms in minutes, rather than waiting on a third-party credit agency to get the essential information needed to make quick business decisions.
    2. Going hand-in-hand with new market expansion is the local knowledge that Atradius can provide. This reason to insure your receivables affords you the luxury of not having to worry about the challenges of working internationally.
    3. In addition, the peace of mind that trade credit insurance provides is irreplaceable. Having your company’s back covered by a team like Atradius allows your internal team to focus on growing the business more efficiently.
    4. One of the main reasons to insure your receivables is actually not to focus on trade credit insurance for protection against payment default, but to have a proactive plan for the unpredictable. Atradius can provide an early warning by monitoring your customers’ payment habits before you do business with them. Monitoring for red flags to avoid making claims altogether is the untold secret of trade credit insurance. Through their one-of-a-kind online database, Atradius is proactively supporting policyholders in the long run to avoid losses.
    5. Last but certainly not least, the final reason to consider trade credit insurance is cost effectiveness. The goal for trade credit insurers is to make sure that the businesses they support can grow safely, securely and successfully. This means providing as many resources and customer service supports as possible without breaking the bank. Having trade credit insurance will also help a company bypass growing their internal credit department because they have a larger team at Atradius supporting them no matter their size. Having trade credit insurance eliminates the third party, meaning you won’t have to work with credit agencies. Added efficiency and savings makes growth a priority and ultimately boosts the success of your business.