Trade Credit Insurance –
Protect Against Commercial Debts
A Matrix of Benefits
Revenue Growth
For the same fixed costs in your business, TCI gives you the confidence to increase sales and enhance the contribution margin to your profit & loss.
Safeguard Cash Flows
It ensures a steady cash flow by indemnifying you for unpaid invoices on outstanding commercial trade debts, reducing the impact on your working capital.
Market Expansion
With TCI, you can confidently explore new markets and customers, knowing that your receivables are protected.
Balance Sheet Protection
A substantial 40% for manufacturers, to 90% for wholesalers/distributors of your total assets are uninsured. TCI provides cover for this gap on assets that often leave companies exposed to adverse capital events, or solvency concerns if left uninsured.
Competitive Edge
Already in an increasingly competitive marketplace, many companies have to consider moving away from secured terms (i.e. letters of credit) and to offer open credit terms to their buyers just to maintain existing ties with their buyer or risk losing them to other willing suppliers.
Financing
TCI can be used as collateral when assigned to your lending banks for receivables financing thereby promoting negotiations with your banks on the borrowing parameters including alternative security, lending margins, solvency or financial covenants and/or loan quantum.
Information and Credit Control
TCI works to complement and supplement your credit control and finance functions to not only identify the quality of your portfolio of buyers, but also to help identify trade debts at risk.
Debt Recovery
The longer a debt remains unpaid the higher likelihood the debt is or will be delinquent. We partner with insurers that offer debt recovery solutions which includes both pre-legal and legal collections.
Risk Mitigation
TCI helps you manage the risk of non-payment due to insolvency or protracted default. Other risk covers include contract repudiation (non-acceptance of goods), and events arising from Government actions.
What is Trade Credit Insurance (“TCI”)?
Trade Credit Insurance, also known as credit insurance or export credit insurance, is a risk management solution that protects your business against the risks of non-payment (insolvency, protracted default*) of commercial debts. It covers both domestic and international trade transactions.
*delayed payment over a certain defined period from 120 to 360 days, depending on markets.
Who is this for?
In addition to trading, wholesaling, distribution (food & beverage, soft & hard commodities, electronics, parts and componentry, ) and the manufacturing sector, we have arranged solutions for clients in the services (logistics to manpower services provision) and construction sector as well.
What does it cover?
TCI covers Commercial and/or Political Risks.
Commercial Risks
Insolvency
Protracted Default
Repudiation*
(*repudiation (of goods) cover are negotiated separately and we can discuss if this is something you require for additional premium)
Political Risks
Currency Inconvertibility / Non-Transfer
Public Buyer Default
Contract Frustration
Import / Export Restrictions
Other types of financing solution(s) including:
- Wanting to secure upfront payment from your buyer for procurement and manufacturing costs before finally shipping the goods to your customer, and with your buyer in turn asking for an advance payment guarantee instrument? There are insurance solutions to this, and bank guarantees or letters of credit are not the only solution!
- Alternatively, is your producer requiring you to advance them monies in anticipation of supplies at a future period? Speak with us today for insurance solutions that can either be complementary or supportive of financing decisions from your lender.
Taking Care Of All Your Risk Management Needs.
Started in the 1960s as an insurance agency, Tan Insurance Brokers is led by a team of extremely experienced and qualified risk managers and advisors and has partnered numerous local and global enterprises for over 4 decades.
At TIB, you always come first. We’ve built our reputation on decades of putting customers first and our experts are always on hand to deliver personalised service and support.
Our Trusted Partners
