Trade credit insurance is vital for businesses who work with other businesses. Essentially, its purpose is to protect your business against late or non-payment of debts or bills by the companies that you work with. In the event of you needing to use it, the credit insurance policy will pay out to help you cover the outstanding payment. As many businesses work purely on credit terms, this protection is essential to cover you should the other business default on payments or become insolvent.
If you work with companies that are based overseas, you might need international credit insurance. Doing business internationally can give you a great advantage as you have a much wider network of people to provide products and services to. However, international trade can also have its problems, with payments being delayed or through a lack of knowledge of the local market preventing you from knowing who you should do business with. With international credit insurance from Euler Hermes, you’ll benefit from their expert local knowledge which can advise you on who is a good risk, and who you should steer clear of.
Euler Hermes’s trade credit insurance works in the same way, using their local knowledge to improve your business dealings. They believe that insurance shouldn’t just be about dealing with problems once they have occurred, but also about preventing problems from occurring in the first place. This is why they make sure that they can expertly analyse the sector that you work in, and use their international network to assess the businesses in your location.
With the economic climate still not showing much sign of improvement, it is more important than ever before to insure yourself against bad debts by making sure you’re protected if those that owe you money are unable to meet their financial commitments.