What is Trade Credit Insurance?
Trade credit insurance is a valuable financial tool to help your business grow safely while safeguarding the portfolio from financial losses due to non-payment. Here are some key points to understand:
Risk Mitigation and Analysis
Atradius analyzes industry trends and the credit risk in your portfolio to ensure that you are working with stable, financially strong businesses. We monitor your portfolio and evaluate the supply chain at every angle. If a customer starts to show signs of financial deterioration, we will alert you immediately so you can take the necessary steps to avoid a non-payment. If an unexpected loss occurs, you can file a claim and we will pay you 90% of the loss.
Sales and Market Expansion
Atradius is a global company with a presence in over 50 countries. Our innovative products and services provide you with the practical tools you need to manage your receivables to build the foundation for solid business growth and success. Atradius can also enable your business to expand into new markets or extend credit to customers that you might otherwise consider too risky.
Strengthen Your Borrowing Power
Traditional lending institutions are more inclined to provide a larger credit facility if the portfolio is insured with Atradius. This helps enable you to secure the working capital needed in order to prevent operational slowdowns due to potential cash flow shortages.
On average, the cost of a credit insurance policy is <.5% of a business’s annual insured sales. This cost is significantly less than what most companies set aside as a bad debt reserve, but our annual insurance premium is also tax deductible!
Benefits of Trade Credit Insurance
Watch our short video to learn more about the benefits of Trade Credit Insurance.
Atradius Insights: More Than Just an Insurance Company
Atradius works with you, providing valuable insight to help you analyze the risk in your portfolio. Click here to see a short video on Atradius Insights and you’ll see why our clients value the information and service provided by Atradius.
A mid-sized Consumer Products Manufacturer was limited in the opportunities they were able to sell due to foreign receivables being internally funded. Atradius was able to step in and implement a domestic and export credit insurance program that transformed pledged accounts receivable into “riskless” assets for the lender, allowing an increase in advance rates, inclusion of foreign receivables in the borrowing base, and elimination of concentration limits.
When EnCom Polymers suffered a revenue loss due to customer credit issues in 2019, the company knew it was time to invest in trade credit insurance. EnCom Polymers selected Atradius to help mitigate customer credit risk, expand sales and improve its credit management processes.
Legrand AV Brands has been in business in the U.S. for 25 years, providing power, light and data to millions of spaces around the world in the form of AV equipment and devices. Legrand AV is no stranger to trade credit insurance. The company made the switch to Atradius, however, after finding its previous insurer expensive, inefficient and overly complicated to work with.
Follett Corporation has led the industry in designing and maufacturing high quality, innovative ice storage bins, ice storage and transport systems, ice machines, ice and water dispensers, ice and beverage dispensers, and medical-grade refrigerators and freezers for the food service and healthcare industries since 1948. Atradius provides insight into new customers and markets as Follett Corporation expands operations.
The Atradius Risk Map provides an overview of the levels of risk in countries worldwide. Our economic Research Team works to gather data focusing on a variety of factors. The Risk Map features the Atradius STAR rating system, created by our Economic Research Team to assess country risk including different political and economic trade risks, or civil unrest and conflict. If your company does business internationally, you’re reliant on the stability of the business environment in the foreign country. Stay up to date on the current risk levels globally with us here.