Trade Credit Insurance
What is Trade Credit Insurance?
Our Trade Credit Insurance allows you to extend B2B credit terms with confidence by covering your trade receivables due within 12 months.
In the event that a customer defaults on payment—whether due to insolvency, refusal, or inability to pay under the terms of the contract—a Trade Credit Insurance policy protects you by indemnifying your losses.
Additionally, Trade Credit Insurance supports your credit risk decisions by providing valuable insights on whom to extend credit to and the appropriate credit limits to set.
How much does business credit insurance cost?
B2B growth can be risky without Credit Insurance but what does it cost?
How does Trade Credit Insurance work?
Trade Credit Insurance is customised to meet the specific needs of your business, guiding your daily credit management decisions as you trade with both new and existing customers.
Customer health check
We assess the creditworthiness and financial stability of your customers.
Credit limit calculated
Each customer is assigned a limit, which represents the maximum amount we will indemnify if they fail to make payment.
Business as usual
You continue trading with your existing customers as you normally would, with the risk covered up to the agreed limit.
Trading limit updates
We keep you updated on any changes to credit limits, which may be increased or decreased as conditions evolve.
Business building
You evaluate the creditworthiness of potential new customers, and we either confirm agreement or explain if your request is declined.
Making a claim
If a customer fails to pay, you notify us. We investigate and, if the policy terms are met, indemnify you for the insured amount.
Benefits of Trade Credit Insurance
Trade Credit Insurance helps businesses grow by safely offering credit to new and existing customers, bringing with it a range of commercial benefits
Protection
Your policy swiftly recovers money lost due to bad debt.
Growth
Expand with confidence, both domestically and internationally.
Insight
Gain a clear understanding of your customers’ credit risk using up-to-date data.
Profitability
Increase your exposure to new customers securely.
Funding
Receivables protection enhances banks’ confidence in lending to your business.
Competitiveness
Offer credit terms, even in situations where competitors cannot.
Market Leading Cover
Our market-leading business credit insurance safeguards your cash flow by insuring your trade receivables, allowing you to trade both domestically and internationally without the risk of bad debt.
We monitor daily shifts in corporate solvency, covering 98% of global GDP. By partnering with BBF, you gain access to the latest credit risk data, helping you guide and optimise your credit management strategies.
Begin your free consultation today to discover the advantages of business credit insurance.
Please note:
Frequently Asked Questions
What is trade credit insurance?
Trade credit insurance protects your accounts receivable against the risk of non-payment due to insolvency or protracted default, while giving your business the insight and confidence to grow revenues with new and existing business customers.
Acting as an early warning system for potential payment issues, trade credit insurance allows you to trade safely with new customers, trade more with existing customers and expand to new sectors or export markets.
How does our trade credit insurance work?
We start by assessing the creditworthiness and financial stability of your customers, in order for us to underwrite safe credit limits on them, with risk coverage up to the agreed limit.
We provide regular updates on those trading limits, adjusting them based on changing conditions. And we support your business growth by repeating this process for new customers.
In the event you tell us about a non-payment for an insured customer, we investigate, and if policy terms are met, we indemnify you for the insured amount.
Acting as an early warning system for potential payment issues, trade credit insurance allows you to trade safely with new customers, trade more with existing customers and expand to new sectors or export markets.
Who needs trade credit insurance?
What does trade credit insurance cover?
How do you calculate the cost of trade credit insurance?
The cost of trade credit insurance is based on a number of factors including the size and nature of your business, the creditworthiness of your customers and the trading limits you need.
It’s calculated for your business and the way you trade and is based on a percentage of your sales, generally a fraction of 1%. So, if your sales were £2 million last year and you wanted to cover that entire amount, the premium would usually be less than £10,000. But remember, premiums can go up or down from year to year.
We are an introducer of business funding & not a direct government backed lending operation or a finance association of any public body.