What is Trade Credit Insurance?
Trade Credit protects your business’ cash flow against losses caused by your customers’ insolvency or default on payment.
Trade Credit Insurance can be used as an effective risk management tool that can:
- Protect and improve your “cash-flow”,
- Enhance your balance sheet and reduce the cost of finance,
- PIncrease your sales and profitability,
- Improve and strengthen your credit control and management procedures.
Do I need it?
If you own any type of business or are a subcontractor and rely on customers meeting their payments, then you should consider getting Trade Credit Insurance.
Offering goods and services to customers can leave you in a vulnerable position if one or more of them don’t pay. Although you may be able to manage some of the smaller bad debts that come your way, large unexpected losses could be devastating for your business.
How to arrange Trade Credit Insurance with us
We want to protect your business and make your life easier. We can act on your behalf and get terms and pricing from a variety of underwriters to meet your specific business needs.
To do this, all we need from you is:
- Your aged debtors trial balance – showing amounts outstanding as of (the current day at the time of reporting, 30 days, 60 days, 90 days and 91 days plus),
- A list of your clients that became insolvent in the last 3 years (including the name and amount of the loss),
- A list of your top 10 customers (including their ACN/ABN numbers and the maximum exposure you believe you’ll have over the next 12 months).
Easyliner - The all inclusive Trade Credit solution for Small and Medium sized businesses
EasyLiner is an all-inclusive trade credit insurance product for small to medium sized businesses. It helps to protect you against unpaid invoices at home or abroad, while keeping an eye on your budget. Plus, it makes the process simple and effective with instant online quoting and an efficient online management tool
How does it work?
EasyLiner protects your cash flow and saves you valuable time, resources and money. It includes 3 key features to ensure your trade receivables are effectively and safely managed.
- Collection of unpaid invoices: Skilled and effective debt collectors will handle your unpaid invoices in Australia and/or overseas. They will strive to preserve the quality of your relationships with your customers at all times,
- Information to make informed decisions: Each of your buyers will be assessed for creditworthiness to help you make the right credit decisions and reduce the chances of unpaid debts,
- Cash-flow replacement: If collection fails, you will be reimbursed.
How Coverforce can help
Coverforce are one of the few insurance brokers in Australia who have an experienced, in-house Trade Credit team.
We provide tailored solutions for businesses both in Australia and overseas. Our experienced insurance brokers can assist you with personalised risk advice and the placement of your Trade Credit Insurance policy.