Trade Credit Insurance Vs Bad Debt Protection 

Is the risk of your new customer defaulting on payment terms keeping you awake at night? 

Perhaps you have received your biggest order ever from an existing customer, but you are nervous about that level of exposure?

Maybe you have considered Trade Credit Insurance or Bad Debt Protection with your bank/funder and are unsure which option to go with?

Let’s take a look at the options and compare Bad Debt Protection vs Trade Credit Insurance: 

 
Trade Credit Insurance 
Bank/ Invoice Finance Bad Debt Protection 

Covers losses occurring from customer insolvency
Yes 
Yes 

Covers Protracted Default

(when a solvent company pays late or fails to pay at all)

Yes 
No 

Covers International customers
Yes 
Yes 

Direct access to insurer/cover provider
Yes 
No 

Risk information on financial stability of your customers
Yes 
No 

Whole Turnover Policy
Yes 
Yes 

Single Invoice Policy
Yes 
No 

Single Risk Policy
Yes 
No 

Agreed Accounts Policy
Yes 
No 

Pre-Credit Risk Cover
Yes 
No 

Tailored Policy to cover the way you trade
Yes 
Yes 

Can only be in place if you have an Invoice Finance facility
No 
Yes 

Policy Run off
Yes – if Risks Attaching 
No – as Losses Occurring  

Account manager focussed only on your bad debts cover/insurance and not finance facility as well
Yes 
No  

What does this all mean?

The best trade credit insurance policy offers predictive protection by providing credit data and intelligence designed to help companies improve their credit-related decision-making and credit management. 

This in turn can save staff time and resources you would have spent on accounting processes and on the collection of the debts. 

The goal is to prevent losses from bad debt. 

No company can avoid bad debt entirely, the trade credit insurance policy is in place to cover losses that occur. 

Not only are you protecting your business against future losses, the added intelligence assists with your pursuit of growth. 

Our Trade Credit Specialist

Maggie Brotherson has worked within Trade Credit for 30 years, a specialist within her area she has a clear and determined passion for doing the best for businesses. Trade Credit Insurance provides businesses with protection against failure and substantial delays in receiving payments.  What may seem catastrophic at first is bearable with a policy structured to fit your business requirements.

Contact Maggie for any Trade Credit enquiries on 07497 199 978 or email her at maggie.brotherson@konsileo.com