Avoid Payment Risks
Protect the Momentum of Expanding Companies
Protect the on-going payments of your existing clients.
Replace bank guarantees or cash terms
How to protect your business against customers who won't pay?
In addition to strictly monitoring and following-up its receivables from your clients, a company can make use of Trade Credit Insurance.
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Trade Credit Insurance covers your invoices, giving you protection if your customer does not pay their bill or goes into insolvency.
What is Trade Credit Insurance?
Trade credit insurance is a financial safety net for businesses that sell goods or services on credit terms. It protects companies against customer non-payment due to insolvency, bankruptcy, or prolonged default.
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Trade credit insurance covers the sales contract between the seller (insured) and buyer (risk), ensuring your invoices are protected. If a buyer fails to pay, the seller will still receive an amount from the insurance company.
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If you own or run a business that offers credit terms to your buyers, trade credit insurance safeguards your company against unpaid invoices and bad debts by insuring your accounts receivables.
Trade Credit Insurance in the Philippines
Similar to other countries within the South East Asian region, the following industries use Trade Credit Insurance:
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Food & Beverage
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Pharmaceuticals
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Paper and Packaging
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Electronics
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Chemicals
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BPO
Who should buy trade credit insurance?
If you are a manufacturer, distributor, exporter that sell goods or a service provider that is on credit terms. There is always a risk that your buyer/s will not be able to pay, or worst, go into insolvency.
With Trade Credit Insurance
Your invoices are covered so you can ship your goods safely. If the payment of your buyer is delayed, you report it to our office and fulfill some requirements.
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A liaison officer will try to enable your buyer to settle their debt, without compromising your business relationship with them.
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Once you send in your claim, the insured orders will be paid, making your financial situation more stable.
Without Trade Credit Insurance
You need to do your own credit checks, pay for consultants, engage with a credit agency or other businesses to research on your buyers' creditworthiness.
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Worse, if your buyer fails to pay, your business will take a hit.