Trade Credit Insurance

What is trade credit insurance?

Protection for your company against bad debt and losses due to disruptions such as customer insolvency, protracted payment, or payment default.
Ensures you receive your payments even if the payor gets into difficulty.
On average, trade debtors represent 40% of a company's current assets. Could your business survive non-payment by trade debtors?

Offers safer penetration into new export markets where you may be working with new international partners and customers
Allows you to offer more competitive terms to creditworthy buyers
You may obtain better financing terms as lenders can deem trade credit insurance as an effective risk mitigation tool for your receivables
Enhances credit management by ensuring smoother cash collection

Protects against non-payment due to situations like buyer insolvency or contract repudiation
Protects against delayed payments including protracted default (i.e. non-payment of an insured debt for a pre-agreed period commencing on the original payment due date)
Protects against political risks such as country or government impediment. This may include disruptions such as cancellation of import licenses, import bans, currency restrictions and others

Restricted to the maximum limit approved by the underwriter for that buyer and to the extent of the insured percentage and the policy's maximum liability
Insured percentage is usually a maximum of 90%

Wherever you are in the world, HSBC's Commercial Banking account provides the flexibility your business needs:

Maximise your cash flow while minimising your effort

Enjoy greater convenience by paying your suppliers quickly and securely using the HSBC payments solutions
Enhance your cash flow by receiving customer payments on time every time