What is trade credit insurance?
Selling on credit can support growth, but booking a sale does not ensure that cash will arrive on time. Trade credit insurance helps protect a business’s domestic or export receivables against defined risks of non-payment. Depending on the policy, these can include buyer insolvency or qualifying protracted default. Allianz Trade ↗
The approach combines buyer risk assessment, credit limits and collections management. An eligible loss is indemnified subject to the policy’s percentages, limits and conditions. Insurance does not mean that every invoice is paid unconditionally or immediately. Atradius ↗
What can it bring to a business?
- Cash-flow resilience: Appropriate cover can reduce the liquidity impact of unpaid receivables.
- Better-informed sales decisions: Buyer assessments support decisions on payment terms and customer credit limits.
- Disciplined growth: Greater visibility of risk helps businesses assess new customers and markets.
- Support for financing discussions: Insured receivables may assist a lender’s assessment, without guaranteeing credit approval or a lower financing cost.
IBL Finance: financial projections before policy placement
At IBL Finance, we approach trade credit insurance as part of a business’s growth and working-capital strategy. We apply our financial analysis expertise to projections prepared during the policy preparation process, creating a practical framework for decisions. Our priority is to clarify the relationship between expected sales and actual cash requirements.
- Portfolio analysis: We assess aged receivables, historical collection performance and concentrations by customer, sector and country.
- Forward-looking modelling: Depending on business needs, we prepare 12–24-month sales, collections and cash-flow projections, highlighting seasonal peaks and the maximum outstanding exposure to individual buyers.
- Stress scenarios: We compare liquidity effects under assumptions such as a 30- or 60-day collection delay, non-payment by a major customer or exchange-rate movements.
- Economic comparison: We consider premiums, retained risk, limits and potential indemnity waiting periods alongside working-capital requirements.
This strategic preparation helps a business present its financial position clearly and consistently. Our projections are assumption-based, not a guarantee of outcomes. The insurer’s underwriting assessment and coverage decisions remain independent.
From preparation to ongoing policy management
- Define the need. Review credit sales, export markets, customers and existing exposures.
- Prepare the financial submission. Assemble turnover, buyer lists, payment terms, loss history and requested limits. IBL Finance supports this preparation with financial analysis and projections.
- The insurer assesses the risk. Buyer financial information and other risk indicators inform eligibility, limits, premiums and terms. Underwriting explained ↗
- Compare the detail. Review insured percentages, exclusions, deductibles, notification deadlines and collection obligations. The selected policy is arranged through the appropriate authorised channel.
- Monitor the portfolio. Track limit changes and overdue payments, and meet the policy’s notification and claims deadlines.
IBL Finance’s support described here concerns financial analysis, projections and preparation. Insurance quotations, policy issuance and claims decisions are the responsibility of the relevant insurer and authorised channels.
Trade credit insurance providers to explore
Three international providers with operations in Türkiye and the United Kingdom. Select a logo to visit the provider’s website.
Insurance solutions are considered in line with each business’s needs and the relevant providers’ assessments. Products and eligibility vary by country and business.
Let’s plan your financial preparation.
Contact us to discuss your receivables portfolio and cash-flow requirements.
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Allianz Trade — UK · Allianz Trade — Türkiye · Atradius — Alacak Sigortası · Atradius — Credit Insurance · Atradius — Underwriting · Coface — Trade Credit Insurance · Coface — Türkiye