TRADE CREDIT INSURANCE

Insure unpaid receivables on terms designed for you.

Trade credit insurance covers losses from a buyer's insolvency or late payment, and from political risks such as transfer restrictions. We first design the terms you need, including which buyers to cover, the limits and the insured percentage, then approach several insurers on those terms and recommend after comparing the results.

WHEN TO CONSULT US

When to Talk to Us

✓Limits on your key buyers fall short of what you need

✓You want to cut the cost and effort of guarantee factoring or letters of credit

✓You want an independent view on whether your current credit policy terms are right

✓You have deals with long payment terms, such as equipment or machinery

WHAT WE DO

Credit insurance designed and negotiated with an underwriter's eye

Trade credit insurance should be judged not just on premium but on whether your key buyers get adequate credit limits and whether the terms fit how you actually trade. Drawing on underwriting experience at credit insurers, we design the program and negotiate with insurers.

Risk analysis and information

We analyze buyers' financials, payment records and trading terms, and present the information insurers weigh most when underwriting.

Negotiating credit limits

If a requested limit is declined or reduced, we find out why and ask for a review with additional information or adjusted trading terms. We also consider other credit insurers and top-up cover.

Policy structure and terms

We choose among whole-turnover, named-buyer and single-buyer policies to fit how you trade, and align the insured percentage, deductibles, discretionary limits and premium with your credit management policy.

Ongoing management and renewal

We review limits and negotiate renewal terms. At renewal we take a broker of record (BOR) letter and compare current terms with other insurers' terms. When payments are late or a loss occurs, we check notification duties and claim requirements and liaise with the insurer.

POLICY STRUCTURES

Policy Structures and Cover Options

Whole turnover

Covers all buyers. Small buyers are covered by unnamed discretionary limits

Named buyer

You choose which buyers to cover

Single buyer

Covers one buyer with a large credit exposure

Top-up

Adds another insurer's limit on top of the limit in an existing policy

Excess of loss (XoL)

Covers the part of cumulative losses in the policy period that exceeds a pre-agreed retention

Medium/long term and projects

Covers receivables with payment terms over one year, and project receivables including work-in-progress costs

Political risk (exports)

Covers non-payment caused by import restrictions, exchange controls or war in the buyer's country. Risks on investments in overseas subsidiaries are arranged through political risk insurance under corporate insurance

CASE STUDIES

Trade Credit Insurance Case Studies

Examples where we reviewed the policy structure or coverage terms of credit insurance.

CASE 01

From guarantee factoring to credit insurance

Food company | Revenue approx. JPY 12 billion

Of about 200 buyers, about 30 were covered by guarantee factoring.

Switching to a whole-turnover credit policy extended cover to all buyers at about the same cost. Discretionary limits for small buyers also reduced the credit management workload.

CASE 02

One policy for domestic and export sales

Chemicals company | Revenue approx. JPY 20 billion

About 300 domestic buyers were covered by credit insurance, and five overseas buyers by letters of credit.

Consolidating into one whole-turnover policy covering domestic and export sales reduced the L/C paperwork. Annual cost in a loss-free year also fell, and domestic and overseas credit management now run on one system.

* Actual cover and cost depend on trading terms and the insurer's underwriting.

FAQ

Frequently Asked Questions

Can we insure just one buyer?

Yes, through a single-buyer or named-buyer policy. Whether cover is offered, and on what terms, depends on the insurer's underwriting.

What if the insurer will not grant the limit we want?

We consider approaching other insurers, top-up cover, or a different policy structure. We cannot guarantee that the limit you want will be secured.

Can you help if we already have a credit policy?

Yes. Ahead of renewal we take a broker of record (BOR) letter, negotiate renewal terms with your current insurer, and obtain and compare quotes from other insurers.

We can also check the limits on your key buyers or review the terms of your current credit policy.