Trade Credit Insurance: The Benefits of an Agency

July 5, 2017

There are many reputable investment grade rated companies that offer trade credit insurance, and we work with nearly all of them. Trade credit insurance, of course, is an innovative insurance product that can help any business grow by allowing you to do business with, and accept orders from, customers that can literally be on the other side of the globe. Any business person worth his or her salt will tell you that there are risks involved in working with a new client, not the least of which is the risk of nonpayment. These risks are magnified by distance, especially when that distance crosses an international border.

Trade Credit Insurance Market

Trade Credit Insurance
Photo credit: Terry Wha via Foter.com / CC BY

That brings you to trade credit insurance market. Now that you’ve realized, at a general, conceptual level, that this is a good type of insurance that can help your company grow, your quest begins to identify which of the myriad insurers in the space will offer you the most amount of credit under a policy.  It is estimated that approximately 2 trillion dollars of B2B sales are insured every year, and there are over 70+ private and government insurers participating this space globally.  Not all participants are equal.

For your company it’s not about finding the cheapest trade credit insurance company, of course, nor is it about choosing the first one you find or reach out to.  It starts with finding the insurer who knows your customers and can offer the most credit on them.  You want the best value for your money – meaning the best customer coverage provided at the lowest price from a reputable company.

Here’s where you may realize that there’s a bit of a conflict of interest in working directly with one company. Henry Ford said it best; “Any customer can have a car painted any color that he wants so long as it is black.” Insurer A is going to offer you his policies, and argue that they are your “best value,” even if there may be a better value at Insurer B. You’ll either never know that Insurer B exists, or if you do your own due diligence, you now have two insurers to deal with directly.

More Colors:  Working with an Insurance Agency for Trade Credit Insurance provides more credit

Working with an agency for your trade credit insurance needs like Credit Eureka opens up the entire market to your company, providing you the most coverage for your customers, and gives you an independent voice in the process.  We work with all the major insurers in the credit insurance industry, give you more options, and provide an objective analysis of which company and which policy contract will be best for your goals.  You won’t be stuck with ‘black’ when sales or finance needs ‘green’.  Plus, because we’re experts and do this all day for our “day jobs,” we provide the additional value of handling the seemingly confusing interactions with multiple companies at once. The value that a trade credit agency like Credit Eureka provides is thus twofold: independence, giving you an independent analysis of your trade credit needs, and efficiency, managing multiple companies at once so you don’t have to.

If you’re interested in exploring your trade credit insurance options, reach out to us, today, to begin the process.


Photo credit: Terry Wha via Foter.com / CC BY

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Dawson Beattie

Dawson Beattie leads CreditEureka as President and founder. He has helped companies navigate international credit markets through nearly 20 years of shifting market conditions. He has helped companies in retailing, mining, technology, life sciences, and agriculture.