The recent demise of Mainzeal, Geon Printing, Starplus Homes and Blacktop Construction has again highlighted the uncertainty of business both in New Zealand and offshore, with sellers and exporters often facing problems caused through buyer insolvency, payment default and political or social unrest.
Trade Credit Insurance policies have been designed to insure against non payment by buyers, quite simply to protect your liquidity, cash flow and profit.
On average 40% or more of the current assets of a typical business are represented by outstanding invoices, and unrealised receivables can easily turn into bad debts.
Trade credit insurance is an ideal solution to protect business profitability, enhance the credit management processes and support business growth.
Cover includes insolvency of an insured buyer, and where insolvency has not occurred, protection against protracted payment default.
For export customers the policy also includes protection against contract repudiation with a political risk option.
Trade Credit Insurance can also help you raise capital from your bank. Banks realise the importance of insuring your debt.
The policy can be structured to suit your needs.
Please contact your broker if you would like more information on this product.