Bad Debt Protection, Credit Management Support to Safely Grow Your Business
What is Trade Credit Insurance (TCI)?
Credit insurance protects your business from non- payment of commercial debt. It makes sure that your invoices will be paid and allows you to reliably manage the commercial and political risks of trade.
Who needs TCI?
Any company which is currently selling or has a potential to sell its products / services to other companies on Open Account / Credit Terms, or looking at expanding into new markets or seeking bank financing.
Benefit of Trade Credit Insurance
Protection against Non-Payment and Catastrophic Loss
Secures your cashflow from impact of a bad debt
Protects against non-payment and insolvency of your customers
The outstanding amount is paid via insurance claims
Offering credit can help you win business from your competitors
More clearer insight of customers & prospects
Better select clients and efficiently process new orders
Reduction in Bad-Debt Reserves
Better manage your trade receivables
Maintain profitability, minimize admin costs and collection expenses
Frees up capital allocated for bad-debt reserves
Better Financing Terms
Improve chances of getting Bank financing
Trade receivables are among the most liquid and secure assets, besides Cash
Quality of receivables are increased with credit insurance
How Trade Credit Insurance works
- You as the supplier currently sell / want to sell to your customers on credit terms.
- You take a trade credit insurance policy with Sompo.
- We vet your customers financial stability and ability to pay for goods/services received. We continuously monitor your risks throughout the policy period.
- After reviewing your customer, we will confirm the amount of open credit that we will insure.
- You can then sell to that customer on open credit, in the knowledge that if your customer is unable to pay you, we will pay instead. We can also assist you to collect the unpaid debt.
Reduces the Total Cost of Risk (TCOR)
Simple. Quick. Customised Solutions to Suit You.
If you are considering Trade Credit Insurance and would like to partner with Sompo and you would like to know more about what this involves, you simply need to complete a short form to give us an idea of your business, and we will give you an indication of the premium cost, benefits, and structure of solution tailored to fit your needs. The cost is based on a number of factors, including how much insurable sales you expect to make, your experience of bad debts in the past, your trade sector and your customers, and which countries you’re selling to.