Trade credit insurance is a risk management tool that protects businesses from bad debts by insuring their accounts receivable. It covers unpaid invoices caused by customer bankruptcy, default, political risks, or other agreed-upon reasons. Also known as debtor insurance, export credit insurance, or accounts receivable insurance, trade credit insurance plays a crucial role in safeguarding businesses’ cash flow by ensuring they get paid even if their customers fail to pay. This insurance can be used for both domestic and export customers, offering flexible coverage tailored to meet individual needs. The policy operates by insuring against buyer non-payment for the insurance
from
https://insuranceintellect.com/what-is-trade-credit-insurance/
No comments:
Post a Comment