Trade Credit Insurance

What Is Trade Credit Insurance?

As a trader, you know that you're taking a chance when you work with other companies. It's always possible that you could end up not getting the agreed upon payment from the company you're doing business with. Whether the company is struggling and pays extremely late, is disorganized, or goes bankrupt, the irresponsibility or misfortune of another company does not have to trickle down to your finances. Prudence Insurance Brokers LLC has you covered for both your trade loans credit insurance and non trade loans credit insurance needs.


It's important to note that trade credit insurance may not pay your full losses if the other party fails to come through on their end of the deal, but it will pay you a pre-agreed upon percentage. While your business will still suffer some loss, you'll be better off than if you decided not to have trade loans credit insurance. In most situations, you can expect to get 75% to 95% of the money you're owed.


It's essential that you clearly document your trade agreements in order to be protected by trade loans credit insurance. If you don't have your trades clearly documented, you won't be able to collect in the event that the deal falls through. You cannot retroactively protect an agreement to be reimbursed by trade loans credit insurance.


Many companies don't take advantage of trade credit insurance until they're concerned that they may be approaching tough times. While this is an understandable approach, it's not recommended by financial professionals. It's smart to keep your business protected from deals gone bad by purchasing trade credit insurance even when the outlook for your business is good.


Technology is changing the game of trade credit insurance. Many companies are working with other companies on a single invoice basis, which is different from how business was done in the past. Today, a credit insurer is able to work with you to insure a single invoice, making it guaranteed that you're going to receive at least a high percentage of the money you're owed, even if the company that you're working with is going under. If your company works with many small businesses on a single invoice basis, it's key that you have insurance for all of your trades, as it can be hard to know which businesses are dependable for full payment.


If you're searching for trade loans credit insurance or non trade loans credit insurance, Prudence Insurance Brokers LLC is here to help. We'll work with you to ensure that your business is protected, no matter how many trade deals you have in progress. Reach out to us today to learn how our trade credit insurance can help you rest assured that your business will continue to grow.