Trade Credit Insurance

Business Credit Insurance

Accounts Receivable Insurance for Businesses

Remember when business was done with a promise & a handshake?  Good news.  It still can.  Business credit insurance permits companies to ‘trust.’ And verify.  Privately insuring a company’s promise to pay.  Providing your company with confidence.  And topline growth.  Insurers who offer business credit insurance are investment grade.  And they’ll often do the work.  They either already have a company’s financials or can accept the ones you have on file.  They can even offer to insure your customer’s payment promise on the basis of your prior trading history.  Insuring payment promises singularly or on a portfolio basis.  Inexpensively.  And quick.  How quick? 

What industries are eligible? Insurers offer policies for just about every country (hello! Uzbekistan!) and industry worldwide. From artichokes to China, life-saving oncology drugs to hospitals, renewable energy power plants, and toys to retailers just before Christmas. A shorter list? Which countries and industries aren’t eligible? With so many diverse industries, insurers offer to cover diverse terms of sale.

Let business credit insurers give your company the inexpensive security it needs to grow.  And put the handshake back into your business dealings. 

crediteureka.  where companies come for extra credit.  Business Credit Insurance

Explore the costs of business credit insurance, learn about rates, the financial impact of events overseas, and educate yourself on issues surrounding business credit insurance on this website. For more information, contact crediteureka for a custom trade credit insurance quote.

What is Business Credit Insurance?

Accounts Receivable credit insurance (“Trade” Credit) protects Sellers from financial loss due to their Buyer’s failure to pay. Coverage is available in over 150+ countries around the world. Triggers are customer bankruptcy, simple non-payment for a protracted period of time, or a government or civil event in the customer’s country.  Insurers partner with the Seller to share up to 90% of the face value of accounts receivable (or 95% when caused by a political or civil event). The insurer and Seller set pre-agreed dollar maximums for the buyers and countries (e.g., domestic vs. international, country-based limits for individual buyers or whole portfolios).

How does it work to pay a loss?

The seller files a claim for the buyer’s outstanding accounts receivable (AR) balance. To settle the claim, the insurer confirms the outstanding buyer debt and takes action to collect the debt (including legal action as needed). In exchange for the seller assigning its interest to the insurer, the insurer pays the seller.

How is business trade insurance priced?

It depends on the insurer and whether protection is for one or more buyers.  Premium is usually calculated by:

  • for multiple buyers, it is a quoted rate (a % of 1%) × estimated $ volume of insured sales annually, or
  • for a single buyer, it is a quoted rate (a per annum rate) × $ accounts receivable balance to be covered. (i.e., similar to a loan).

Who are the insurers in the Trade Credit Insurance marketplace?

Credit Eureka works with over 25+ investment-grade insurers worldwide, each with different geographic capabilities, industry expertise, and pricing.

How do I get started?

We’re ready to learn about your business and provide a solution. Apply online or Contact us for a consultation on any issue, ranging from trade credit insurance (generally) or AR Puts to specific issues such as export credit insurance, political risk insurance or even working with the EXIM bank.