An Introduction to Trade Credit Insurance

  • Price: £3.60
  • Published: October 2016
  • Type: Business Information Factsheet
  • Format: PDF

Many business proprietors provide credit to trade customers, enabling them to 'buy now and pay later', but then face the risk that those customers will not pay for the goods and services they have received. Trade credit insurance is a particular type of insurance that covers a business against bad debts or trade customers becoming insolvent. It is most commonly used when exporting goods abroad, but can also be used to cover transactions with customers within the UK.

This factsheet summarises the general principles of trade credit insurance and explains the types of policy available, the benefits of trade credit insurance, insurers' considerations when issuing a policy, and how to arrange trade credit insurance.

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