Guarantee Trade Credit Solutions provides a customizable suite of products to protect your accounts receivable from losses arising through the insolvency or non-payment of domestic and international buyers.
Counterparty risk is a key consideration when it comes to extending credit, whether at home or abroad. Our Trade Credit products have been thoughtfully designed to mitigate the risks of non-payment and to provide specialty coverage wherever our clients are positioned in the supply chain.
Trade Credit Insurance is predicated on two types of losses, insolvency and protracted default. Whether your customer has formally filed for bankruptcy or is significantly delaying or failing to make a payment, the effects on your cash flow and balance sheet can be severe. By insuring against these events, you are providing an additional line of defence for your balance sheet, and ensuring that the capital invested in inventory and work in progress shows returns where it should – your bottom line.
Guarantee Trade Credit Solutions offers multiple options for insuring your accounts receivable. Ranging from policies designed to cover a specific risk concentration to insuring your entire portfolio of sales, The Guarantee has a creative solution for your business. In addition, specialized coverages can be drafted to suit our clients’ individual needs.
Political Risk coverage may be added as a complementary coverage to Trade Credit. When selling internationally, transfer risk, contract frustration, and license cancellation are real threats, and including them in your policy offers another way to protect your business.
Risk mitigation is the most commonly discussed attribute of Trade Credit Insurance, however, insuring your accounts receivable can unlock a great deal of additional value. As a financing tool, the ability of lenders to margin against insured accounts receivable can lead to more favourable banking facilities. Trade Credit can be used as a way to extend credit with confidence in new markets and countries to grow sales. In the case of mergers and acquisitions, Trade Credit Insurance can be used to safeguard the value of a target’s balance sheet.
To learn more about our Trade Credit Insurance, contact us today.