Businesses selling goods or services on credit terms are often vulnerable to bad debt and payment default. Slater Byrne Recoveries has recently been in contact with Lockton – a global leader in risk management and insurance – and we thought businesses might be interested in learning more about Lockton’s trade credit insurance product (TCI), and how it might assist with payment of bad debts, especially during this difficult economic cycle.
What is trade credit insurance?
Trade credit insurance is the best insurance solution to ensure businesses get paid for the goods and services they supply. TCI protects businesses from unpaid invoices caused by insolvency, default, or other political risks, giving them much needed peace of mind. TCI is also called debtor insurance, export credit insurance, or accounts receivable insurance.
We hate seeing our clients suffer from a few bad customers who choose not to pay them after receiving their services.– Annabelle Parry, Director, Slater Byrne Recoveries
How can you benefit from trade credit insurance?
- It protects your cash flow with up to 90% cover of any insured debt following your customer’s insolvency or default.
- It protects your profits from the impact of bad debts.
- You can use Lockton’s credit management service to monitor your exposures.
- It allows you to provide increased credit lines to existing clients knowing your outstanding are insured.
- The insurance policy can facilitate enhanced financing terms and can be assigned to your financier.
- It provides risk mitigation solutions when dealing with credit limit decisions and customer risk analysis.
How does trade credit insurance work?
Lockton is a specialist insurance broker with a focus on trade credit insurance. Lockton is partnering with Slater Byrne Recoveries as their products work hand-in-hand to help protect cash flow.
Watch this video to know how you can benefit from trade credit insurance:
Trade credit can cover you for up to 90% of any unrecovered debt or, in cases where debt collection isn’t possible, such as insolvency. Additionally, many of the costs related to debt collection can be reimbursed under the policy. We see this as a win-win-win and trade credit can be used to protect your profits, provide you with confidence to enter new markets, or increase limits on existing customers to give you the peace of mind to trade in this challenging economic environment. After an interesting couple of years with COVID-19, the trade credit market is now more open for business. Competitive rates and comprehensive cover are on the table and if you think this is worth a discussion please reach out, we’d love to hear more about your business.Sam, Senior Associate, Lockton Australia
If you are interested to know more about this product, or would like to discuss if your business would qualify, don’t hesitate to contact us at:
Liam White joined the Slater Byrne Recoveries team in early 2013. He has worked across the credit & dispute resolution industry for a number of years. He is currently National Head of Sales at Slater Byrne Recoveries.