How trade credit insurance works
Protect your business from the effects of non-payment from your customers trading on credit terms. Trade credit insurance helps protect you if customers fail to pay for goods or services provided on a credit basis (where the buyer pays at an agreed future date), usually due to insolvency or lack of funds.
We recommend it for any business dealing on credit terms - whether you are supplying goods, providing services, or operating in a contracting environment with unfamiliar customers or export markets.
Benefits of trade credit insurance
- Supports growth by safeguarding cash flow.
- Helps unlock access to financing.
- Enables you to trade with confidence.
- Optimises your business's working capital.
- Protects one of the most important assets on your balance sheet.
- Your business gets paid if your customers/buyers become insolvent while owing you money.
How we can help
We’ve teamed up with some leading providers to deliver a range of flexible cover options digitally, or over the phone, including:
- CoverCredit - if you're looking for traditional trade credit insurance.
- Bespoke trade credit insurance - if your business turns over more than £10 million, we can ensure that the structure meets your needs as an individual business.
What is trade credit insurance and how does it benefit you?
Option 1: CoverCredit
If you grant credit to your business customers, and your business has an annual turnover of up to £10 million CoverCredit is the solution developed especially for businesses like yours.
Benefits and features of CoverCredit
- £10,000 discretionary credit limit as standard
- 30 days ‘contractual’ grace/notice period on credit limit reductions, and cancellations as standard
- Collections and legal services at no additional charge
- Covers any business dealing on credit terms
- Covers holders in cases of insolvency and protracted default (where a customer simply can’t pay or won’t pay)
- Easily managed credit limits and claims via an online portal
- Fixed annual premium
- Flexible payments – monthly or quarterly instalments
- Political risk cover included on all export markets
- Reduced claims administration and waiting times
- Three months of binding orders cover as standard
- Underwritten by Coface, a leading insurer in credit insurance
- Various endorsements can also be added as required, including work in progress, advertising, and/or contracting
Any personal data you share with Coface via its website will be shared with Marsh Commercial. Marsh Commercial may use this personal data to contact you in respect of the trade credit risk management solutions offered by CoverCredit. Marsh Commercial may share your personal data with its affiliates, regulators, professional advisors and outsourcers. Your personal data may be transferred outside of the EEA. For further information on how Marsh Commercial uses personal data, please read our Privacy Notice .As with all insurance policies, terms and conditions apply. Please refer to the policy documentation for exclusions, warranties, subjectivities, excesses and any endorsements.
Not sure if CoverCredit is right for you?
That's okay, speak to one of our friendly trade credit insurance experts who will be happy to answer any questions you have. Simply call us on this number or get in touch and we'll call you.
Option 2: Bespoke trade credit insurance
CoverCredit is designed for businesses with an annual turnover of up to £10 million. Businesses who turn over more than £10 million annually often require a more bespoke solution which requires a hands-on approach.
If your business has an annual turnover of more than £10 million we recommend you speak to a member of the trade credit insurance team so we can discuss the options available to you, the key is ensuring that the option you choose is right for your business needs and provides real value for money. To do this simply call us on 0121 623 1207 or get in touch and we’ll call you.
Not sure what to do next?
Not a problem, many businesses feel the same. To speak to one our friendly trade credit insurance experts, simply call us on this number or get in touch and we’ll call you.
Frequently asked questions
Today, UK businesses invest in trade credit insurance for many reasons – from protection against credit risk to enhanced access to funding.
Businesses typically need trade credit insurance to help them protect against the risk of non-payment of invoices by customers, suppliers and buyers. Often due to insolvency or lack of funds.
Over half (55%) of SMEs said that late payments increased over the course of 2023 and findings from the dispute register identified one in five insolvencies are attributed to late payments. With 30% of invoices not being paid within the agreed terms, trade credit insurance is seen as an attractive form of protection. But, the truth is that trade credit insurance offers a great deal more.
Over the last few years, trade credit insurance has evolved significantly, in response to economic change and the needs of businesses. These days it’s more sophisticated – offering opportunity as well as protection.
Trade credit insurance can also be used to optimise working capital without incurring significant operational overheads in areas like credit risk assessment and credit control. Trade credit insurance can also help businesses gain access to any finance they may need to invest in growth.
By using trade credit insurance to defend accounts receivables and manage credit risk, business can position themselves as lower risk investments for lenders.
Credit management refers to the process of overseeing and controlling a company's credit policies and practices. It involves managing the credit extended to customers, monitoring their payment behaviour, and ensuring timely collection of outstanding debts.
Effective credit management is crucial for businesses to maintain a healthy cash flow and minimise the risk of bad debt obligations. It involves assessing the creditworthiness of customers, setting credit limits, and establishing clear payment terms and conditions.
Credit management also includes monitoring customer accounts, sending reminders for overdue payments, and taking appropriate actions to recover outstanding debts. This may involve implementing collection strategies, negotiating payment plans, or even pursuing legal action if necessary.
By implementing sound credit management practices, businesses can mitigate the risk of late payments or defaults, improve their cash flow, and maintain strong relationships with their customers. It’s an essential aspect of financial management that helps businesses maintain financial stability and achieve long-term success.
We’ve teamed up with Coface to deliver CoverCredit, a trade credit insurance solution designed for businesses with an annual turnover of up to £10 million. If you grant credit to your business customers, CoverCredit is the solution developed especially for businesses like yours.
Coface is a global leader in credit insurance, information services and debt collection with over 4000 employees operating in 100 countries worldwide. Coface is authorised in France by the Autorité de Contrôle Prudentiel and subject to limited regulation by the Financial Conduct Authority.
This insurance is arranged by Marsh. Marsh itself is not an insurer of any risk. Your insurance will be underwritten by Coface.
Our CoverCredit solution is designed for businesses with an annual turnover of up to £10 million. However, business who turn over more than £10 million often require a more bespoke solution.
If your business has an annual turnover of more than £10 million, we recommend you speak to a member of the trade credit insurance team. Simply call us on 0121 623 1207 or get in touch and we’ll call you.
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