Insuring for Trade Credit

For many companies, accounts receivable is one of the largest assets on their balance sheet – But what if your client does not pay?

Trade Credit insurance covers bad debts due to insolvency or default.

Trade Credit insurance does not replace good credit management but as we have seen time after time, just one corporate insolvency can have a domino effect and threaten the financial survival of businesses that it trades with.

Tempo Tips

• In 2022 there were 5,550 corporate bankruptcies in Australia. It is predicted that with higher inflation and interest rates that this number will rise in 2023.
• The best time to buy Trade Credit is now. When the economy is uncertain (ie: recession), insurers are reluctant to accept new clients but they will usually renew existing policies.