Don’t let one bad creditor bring your business to its knee’s.

What is contract Trade credit Insurance?

If you trade or sell goods on a credit basis, your at risk of bad debt or the non payment of customers. This can disrupt your cashflow and leave you out of pocket.

Trade Credit insurance is important for protecting your income and business assets against potential customer failure. With the right cover, you can grow your business confidently, knowing you can be protected if things go wrong.

Who should consider it?

All registered businesses that sell goods and services on credit terms, such as 30 days to pay, should consider trade credit insurance. This includes businesses that trade domestically and internationally.

Some trade credit insurance policies also offer the bonus of working with designated collection agencies to help you recover your debts – taking the pressure off this difficult and time consuming process.

Late payment have continued to increase, this suggests that some of the weakness evident in the economy early in 2017 has impacted the time it takes firms to pay their bills

(Dun & Brad Street Economic Adviser advised in 2017)


On average , 59.8% of Australian businesses pay their bills on time, while 9.5% pay more than 60 days beyond invoice terms. (Dun & Bradstreet, late payments in Australia, Dun & Brad street 1St Quarter Analysis 2017 )


The average late payment time for Australian Businesses is 15.3 days late. (Dun & Bradstreet, late payments in Australia, Dun & Brad street 1st Quarter Analysis 2017)

Big to small payment times showed a clear pattern of larger firms at a delayed rate : big companies even later, (Dun & Bradstreet , late payments in Australia , Dun & Brad street 1St Quarter Analysis 2017)

What Can it Cover?

Depending on your policy, Trade insurance can cover you against :

Type of Cover

Potential Benefits

Comprehensive Cover

Protecting your entire Credit portfolio, including domestic and export customers

Excess of loss

Suitable for business with strong internal credit management processes who want cover for exceptional loss across their entire portfolio

Key Account

Covers Key Account for clients requiring protection on their largest  buyers ; optional -cancellable credit limits and deductibles

Single buyer

Covers Single Buyer coverage for quality credit risks

What Usually Isn't Covered?

Exclusions the excess you need to pay and limits of liability can vary greatly depending on your insurer. Polices generally wont include cover for ;

  • Failure to fulfil any terms and conditions of the contract or comply with any provisions of law
  • Failure to obtain any import or export licence necessary for the performance of the contract
  • Any loss related to interest charges, penalties legal costs, banking costs and currency exchange rates changes

Case study

As small wine maker who has been exporting oversea’s for five years, Debra faces two challenges . Like other winemakers, she has long working capital cycle. Secondly, there’s the risk of non Payment  especially among new export clients.

Debra only exports small shipments and takes out trade credit insurance. This strategy pays off, as she sends a shipment to a new client who doesn’t pay.

After unsuccessful attempts at getting the payment, Debra makes a successful claim on her trade credit insurance.

The insurance payout covers her loss, which fills the gap that the non payment made in her cash flow. This Means she doesn’t have to borrow money to keep her business going.

A product disclosure statement (PDS) is available from us. You should consider the PDS in deciding whether to acquire or continue to hold, business insurance.

Important note: This information is provided to assist you in understanding the terms, implications and common considerations with this type of insurance. It does not constitute advice, and is not complete, so please discuss the full details with us.

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