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Credit & Bonds
Trade Credit (UK) - A new angle covering trade credit insurance & surety
Winning orders in today’s competitive markets often requires offering credit terms to commercial customers. But when a buyer becomes insolvent before meeting the credit terms it can have a crippling effect on the supplier’s balance sheet. Trade credit insurance protects companies of all sizes against such losses, clearing the path to secure profitable growth.
Trade credit receivables represent an average 40% of UK companies’ assets. Protecting this asset provides invaluable balance sheet protection and safeguards profit margins – allowing suppliers of goods and services to trade with the confidence required to grow a business successfully.
A trade credit insurance policy provides broad and effective protection against the common problems of buyer insolvency and payment default – whether locally or overseas. Part of the protection offered by trade credit insurance is a continual assessment of buyer risks. This provides an effective early warning system and instils enhanced discipline in the insured company’s credit control function. Avoiding poorer quality debtors and focusing on building sales with better-rated companies improves performance overall.
QBE Trade Credit
QBE is a leading provider of trade credit insurance. Our specialist in-house claims team provides a fast and effective claims-handling service, and our partnership with a specialist debt recovery company delivers valuable guidance and advice in cases of customer insolvency.
Major corporations around the world value trade credit insurance as an effective mechanism for enhancing the quality of their balance sheet assets. A variety of underwriting solutions are also available that can enable companies to minimise balance sheet provision against bad debt.
As well as offering trading confidence and peace of mind trade credit insurance provides a range of additional benefits including a healthier loss ratio and improved access to finance. Insured companies also benefit from superior customer intelligence – allowing them to monitor and manage existing relationships, to direct their marketing strategies, and respond effectively to the dynamics of the markets in which they operate.
Trade Credit Coverage
- Whole Turnover
- Multi-Buyer Cover
- Excess of Loss
- Single-Buyer Cover
- Top-Up Cover
- Surety Bonds
- International Trade Credit Providers
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