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Trade Credit Insurance

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YOU DECIDE WHICH ACCOUNTS TO INSURE

Insure one customer

Insure a few customers

Insure all your customers

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VERIFY YOUR CUSTOMERS’ CREDIT WORTHINESS, INSURE YOUR INVOICES AND PROTECT YOUR REVENUE

Bad debts and bankruptcies can be devastating for businesses. Trade credit insurance is used to submit a claim when your insured customer is unable to pay their invoices. The sales required to make up for bad debts can be substantial and even unachievable. Without trade credit insurance, you’d need $400,000 in revenue to compensate for $20,000 of bad debts if your profit margin is 5%.

BENEFITS OF TRADE CREDIT INSURANCE

Access New Markets

  • Credit insurance lets you confidently explore new markets. You’ll be able to increase sales with existing customers by increasing their credit limits. You’ll also have a competitive advantage to acquire and retain new customers by offering advantageous credit terms.

Avoid Bad Debts

  • Before insuring an invoice or an account, a credit assessment of your buyer is performed by the insurance provider’s risk analysts. This evaluation helps determine if they are likely to honour their payment commitments, therefore reducing the risk of bad debts. If your buyer cannot pay their invoices, you’ll be able to file a claim with the insurance provider.

Improve Credit Functions and Structure

  • The insolvency of one of your major customers could have a significant impact on your business operations. Having a trade credit insurance policy can help identify early signs of payment difficulties.
  • A company’s accounts receivable is often the largest and most at-risk asset. Trade credit insurance acts as a safety net against late payments and bankruptcies of your national and international buyers.

Facilitate Bank Financing

  • Secure better bank financing and borrowing terms with a trade credit insurance policy.
  • When your accounts receivables are covered by a trade credit insurance program, both Canadian and export sales can be used as collateral to secure cost-effective working capital. This can help you grow your business and avoid cash flow issues.

Collection services

  • Trade credit insurance provides access to effective collection services.
  • You only need to pay collection fees if actual amounts owed are collected.

Monitoring of your Buyers

  • Trade credit insurance is a risk management tool that contributes to the financial health of your business. The insurance provider’s risk team will monitor your buyers’ credit worthiness over the course of the year.
  • You’ll be notified in no time if one of your buyers is in default with another supplier.

Make the right credit decisions

A reliable database allows you to verify the creditworthiness of buyers worldwide.

The insurer providing credit coverage often acts as a partner and helps your company avoid financial losses. They also provide market intelligence and insight into the financial health of buyers.

Request Coverage on Buyers Worldwide.

You’ll no longer need to get references or credit reports. Simply rely on the insurer’s powerful database and financial guarantee.

Bid on tenders with the financial security of your insurer.

You’ll no longer need to request security deposits, loans or letters of credit.

You’re in good company!

Our main sectors

Distribution

Food

Industrial

Lumber

Manufacturing

Mining

Software

Transportation

Invoice Cover is a commercial-line damage insurance brokerage. Through its brokers, Invoice Cover is registered and licensed in the province of Quebec.

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