Trade credit · Kandivali East, Mumbai
Trade Credit Insurance for Businesses That Sell on Credit
When you sell goods or services on credit, an unpaid invoice can affect your cash flow. Trade credit insurance can cover part of the loss when a buyer cannot or does not pay, within the limits and conditions of the policy. We help you understand how the cover works and what an insurer will need.
How it works
How Trade Credit Cover Works
What It Can CoverNon-payment by buyers because of insolvency or prolonged default, on domestic sales, export sales or both, depending on the policy.
Limits for Each BuyerThe insurer usually sets a credit limit for each buyer. Sales above that limit, or to buyers without one, may not be covered.
Your Share of a LossPolicies normally pay a percentage of an insured loss and may include a deductible or a waiting period before a claim can be made. Check these before you rely on the cover.
Good to know
Before You Apply
What Insurers Ask ForYour annual credit sales, the number of buyers, usual payment terms, and your history of bad debts and late payments.
Conditions to FollowPolicies usually require you to report overdue invoices and take agreed collection steps within set time limits. Missing them can affect a claim.
What It Does Not ReplaceThe cover works alongside your own credit checks. Invoices that are disputed are usually treated differently from undisputed debts; read the policy wording.
Next step
Discuss Your Credit Sales
Have your approximate annual credit sales, number of buyers, usual payment terms and recent bad-debt history ready for the conversation.
102, New BMC Market Building, Akurli Road, Kandivali East, Mumbai 400101 · Monday to Saturday, 10 am to 6 pm