Trade Credit insurance protects you from the risk of delayed or unpaid invoices. So you and your business can keep going - and growing.
Trade Credit Insurance
Protect yourself from unpaid invoices. So your business can keep growing – and going.
What is Trade Credit Insurance?
A safety net for your business in times of uncertainty, Trade Credit insurance protects you against the risk of non-payment for goods or services sold on credit. So, if a customer is unable to pay an invoice, your insurer pays you instead. At least 90% of the owed amount. Meaning less worry – and better growth. Trade Credit insurance helps you trade with confidence. Explore new opportunities. Build new relationships and strengthen existing ones – without worrying about the consequences of unpaid debts. Whatever challenges your customers face, you’re protected. This added layer of security makes you more appealing to lenders, too. Which means it’s easier to secure financing. In a world where change is the only constant, Trade Credit insurance frees you to be bold, gain the edge, and grow your business beyond your aspirations – both at home and abroad.
What are the benefits?
Protect your incomings and facilitate your growth. Trade Credit gives you a handle on risks outside your control.
Protect and Grow
Protect income and grow whilst managing external risks
Customer Insights
Get the latest market intelligence on new and existing customers
Competitive Credit Terms
Gain competitive advantage by offering extended payment terms
Boost Customer Reach
Improve your profits by reaching more customers
Working Capital Access
Increase your access to working capital facilities
Lower Bad Debt
Reduce bad debt reserve requirement
Replace Working Capital
Quickly replace your working capital
Enhanced Credit Management
Gain enhanced credit management procedures
What’s covered?
Non-payment due to insolvency
When a customer ceases to trade and there is no chance of being paid for outstanding invoices.
Payment delays (protracted default)
When a customer continues to trade but due to financial difficulties is unable to pay invoices as they fall due
Political risk
When a customer is unable to pay invoices as they fall due owing to policy decisions or actions by a government or political forces in the customers country.
Why Lockton?
Not only are we trusted partners across the entire Trade Credit insurance landscape, we’re the world’s largest independent broker on the market. And it’s our independence that frees us to focus on you. We’re not tied to any shareholders or investors. Which means we’re truly free to find the best insurer for you. Family-run and privately owned, our dedicated, globally-connected associates are on your side and at your side, learning your business inside out. It’s a personal, time-tested service that tailors solutions to your exact needs. We love working this way. And our clients love knowing we go above and beyond to deliver.
Talk to us
Nigel Birney
Head of Trade Credit UK & Ireland
nigel.birney@lockton.com
+44 791 710 7441
Anne Dalton
Head of Trade Credit London
anne.dalton@lockton.com
+44 207 933 1465
Bryan Gray
Head of Business Development , Republic of Ireland
bryan.gray@lockton.com
+353 861 280 883
Get in touch
Our latest insights
Trade Credits FAQs
What is Trade Credit Insurance?
Trade credit insurance protects your accounts receivable against the risk of non-payment due to insolvency or protracted default, while giving your business the insight and confidence to grow revenues with new and existing business customers.
What risks does Trade Credit Insurance Cover?
Trade credit insurance covers your business against the risk of non-payment by your customers due to insolvency, protracted default, or, where applicable, certain political events.
Is Trade Credit Insurance and Debtor Insurance the same time?
Trade Credit Insurance is sometimes referred to as Debtor Insurance, Trade Receivables Insurance or Bad Debt Protection.
Acting as an early warning system for potential payment issues, trade credit insurance allows you to trade safely with new customers, trade more with existing customers and expand to new sectors or export markets.
Would Trade Credit Insurance be suitable for my business?
Any business that sells goods or services on credit terms to other businesses can benefit from trade credit insurance. This includes businesses of all sizes and all industries, from small and medium-sized enterprises to large multinational corporations.
Can Trade Credit Insurance cover export sales?
Trade Credit Insurance is a global product and can cover trade conducted both at home and abroad.
Can Trade Credit Insurance provide great access to working capital facilities?
Trade credit insurance may help your business to access finance by providing reassurance to lenders and investors that you’re protected against the risk of non-payment. This can make it easier for your business to secure loans, overdrafts, and other forms of finance.
How is the cost of Trade Credit Insurance calculated?
The cost of trade credit insurance is based on a number of factors including the size and nature of your business, the creditworthiness of your customers and the trading limits you need.
It’s calculated for your business and the way you trade and is based on a percentage of your sales, generally a fraction of 1%.
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We bring creative thinking and an entrepreneurial spirit to the insurance business and are uniquely positioned to help you succeed.
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