Trade Credit Insurance A Critical Tool For Enhancing Business Stability And Growth
Trade credit insurance protects businesses from the customer default risk, irrespective of whether it is for untimely payment, insolvency, or due to some other political factors. With such cover, businesses can take on a larger operational scope as either domestic or international and increase sales across new and current customers while being secure financially.
Besides risk mitigation, trade credit insurance also constitutes a strategic asset in cash flow management. A business may use its insured receivables as collateral to negotiate better loan terms in financial markets; thus, improving its position.
The most important role of trade credit insurance has emerged in the face of today’s unforeseeable and far less predictable economic climate, with increasing corporate defaults and a strong penchant for late payments. Those businesses that use this coverage protect their earnings and position themselves for growth and stability.
To learn more about why traders want trade credit insurance, download this PDF.
