Trade credit insurance is an essential form of risk management tool. Find out how this type of coverage protects your business from potential losses
Accounts receivables comprise around 40% of a company’s assets, according to the latest research from Allianz Trade, one of the world’s largest trade credit insurance providers. Data also shows, however, that one in 10 of these unpaid invoices eventually becomes delinquent, highlighting the need for proper coverage.
This is where trade credit insurance comes into play. This form of risk management tool is designed to protect businesses against bad debts.
In this article, Insurance Business digs deeper into this type of protection. We referred to industry specialists to explain how the policy works and what benefits businesses can get by obtaining coverage.
If you’re searching for ways to protect your company’s cash flow, then trade credit insurance might help. Learn more about this essential type of business insurance in this guide.
Trade credit insurance is a type of business policy that protects your company’s accounts receivables against losses from unpaid commercial debt. If a customer fails to pay due to bankruptcy, ins