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Trade Credit Insurance

Trade Credit Insurance by Sompo Insurance protects your business from bad debts so that you can focus on maximizing your business growth instead of worrying about repayments. It covers your accounts receivables and protects your business from unpaid invoices caused by customer bankruptcy, defaults, political risks, or other reasons outlined in the policy. 

Trade credit is a powerful commercial tool for conquering new markets and building customer loyalty. However, it is also a double-edged sword that can weigh on your working capital and cash flow if left uncollected. As part of your cash flow management strategy, trade credit insurance can help you control this credit risk. It will ensure that invoices are paid and allow you to manage the commercial and political risks of trading.

We will partner with you to structure the solution, premium cost, and benefits according to your business needs, which includes how many credit sales you hope to insure, your experience with past bad debts, your trade sector, customers, and which countries you are selling to on credit.


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Protect your cashflow

Always-On Business

Protects your cashflow to keep your business sustainable.

Includes sales expansion risks

Enable Sales Expansion

If receivables are insured, a company can safely sell more to both existing customers and new customers without worrying about the risks.

Reduction of bad debt reserves

Reduction of Bad Debt Reserves

Insuring receivables frees up capital for the company. Also, credit insurance premiums are tax deductible.

Benefit requirement for bank loan

Improved Lender Relationship

Trade credit insurance can improve a company’s relationship with its lenders. In many cases, the bank will require trade credit insurance for a company to qualify for an asset-based loan.


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Insurance Glossary

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