Is Trade Credit Insurance Right for my Business?

Discovering if trade credit insurance is right for your business should start with reviewing your strategic goals and vision for growth.

Are you hoping to expand your business into new markets abroad? Are you about to start trading with a new customer you know nothing about? Is maintaining solid cash flow important to your business?

These are just a few of the questions you should begin asking yourself when evaluating whether trade credit insurance is right for your business. If your business prioritizes any of the following five points, then trade credit insurance is for you.

1. Peace of Mind

Trade credit insurance provides peace of mind for any business looking for an added layer of payment protection – ensuring that you get paid for goods and services you supply to customers within the United States and abroad. The goal for trade credit insurers is to make sure that your business feels supported enough to grow safely and successfully.

2. Strong Growth & Risk Management Strategy

With support from a trade credit insurance team, you can shape your risk management strategy to meet your company’s growth and protection goals. As part of a strong risk management strategy, it is critical to secure your finances, so companies should be confident that their customer is going to pay an invoice or know that they can rely on a trusted third-party for protection if a customer cannot pay.

It is prudent to have a solid risk management structure that includes insuring your account receivables. Trade credit insurance does just that and serves as an overlay on the protective measures the company is already taking, such as assessing the credit worthiness of the buyer throughout their relationship, monitoring their finances and mentions in the press.

3. Safely Expand into New Markets

Atradius has helped hundreds of companies quickly determine the credit worthiness of customers, which enables them to sign on new customers and increase existing credit lines to established customers. Atradius is an international company, with offices in more than 50 countries, therefore, if there is a business in a different country you’re hoping to do business with, Atradius can create those opportunities for growth that you’ve been looking for.

Protecting companies from insolvencies, having a proactive approach to credit monitoring and further preventing any catastrophic losses are the securities that trade credit insurance provides. 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’ tools and support for continued growth and protection.

4. Protect Cash Flow

If your business trades and depends on the payments of others to maintain cash flow, having your company covered by a team of credit insurers can help you avoid late payments and insolvencies if there are delays in the supply chain or slow customers. Trade credit insurance helps maintain your cash flow and protect you from losses that may be caused by the failure of a customer to pay an invoice through insolvency, or their refusal or inability to pay under the terms of a contract.

Your business should feel confident that their customer is going to pay or know that they can rely on a trusted third-party for protection if a customer cannot pay so that payments are guaranteed one way or another.

Credit insurance with Atradius can be used for both domestic and export trade, with personalized options available for your unique needs. If it sounds like Credit Insurance is right for you, we can offer a free quote today. Or learn more about our trade credit insurance offerings here.