Trade Credit

If you trade or sell goods on a credit basis, you’re at risk of bad debt or non-payment by customers. This can disrupt your cashflow and leave you out of pocket.

All registered businesses that sell goods and services on credit terms, such as
30 days to pay, should consider trade credit insurance. This includes businesses that trade domestically and internationally.

Some trade credit insurance policies also offer the bonus of working with designated collection agencies to help you recover your debts – taking the pressure off this difficult and time-consuming process.

Depending on the policy, trade credit insurance can be either:

• Comprehensive cover: Protecting your entire credit portfolio, including domestic and export customers
• Excess of loss: Suitable for businesses with strong internal credit management processes who want cover for exceptional loss across their entire portfolio

There are exclusions. There is also often a deductible or excess and limits on cover, so check with your GSK insurance broker.