Credit insurance, also called accounts receivable insurance, provides your business with protection against the failure of your customer to pay its trade debts. This can arise because your customer becomes insolvent or because your customer fails to pay within the set timeframe. These risks are usually described as 'commercial' risks. Companies that export can also protect themselves against a range of 'political' risks that may prevent or delay payment. This arises when payment is not received as a direct result of a war in the buyer's country, cancellation of a contract by the government of the buyer's country, or when a government implements regulations which either prevent the export or import of the goods - or prevent or restrict the transfer of hard currency - from the buyer's country.

Companies of all sizes can benefit from credit insurance. Our customers range in size from small businesses to large, multi-national companies. Firms in most sectors of the economy - including business services as well as those trading in goods - use credit insurance.

Credit insurance protects your commercial accounts receivable from unexpected and catastrophic losses, resulting from insolvency or "non-payment" by your buyers.

Through the use of insurance, your company can:

• Expand Sales
  - Sell more goods/services on credit terms
  - Reduce the risk of exposure to non-payment by your buyers
  - Increase Borrowing Power
• Name your financial institution as "loss payee" to provide the bank with security for lending
  Invest in credit insurance and you may receive more favourable loan terms
• Stabilize Cash Flow
• Reduce unexpected or catastrophic bad debt losses
• Forecast credit insurance premiums accurately for next year's budget
• Develop New Markets
• Eliminate the need for expensive Letters of Credit
• Develop customers in new markets while armed with knowledge and expertise about those regions