Trade Credit Insurance
Trade Credit Insurance
Trade Credit Insurance protects your business against the risk of non-payment by commercial customers. It ensures you can recover a portion of your receivables if a buyer fails to pay due to insolvency, default, or protracted delays. This type of insurance is essential for businesses that offer goods or services on credit terms particularly those selling to wholesale, retail, export, or B2B clients.
Cover can be structured to protect a single client, a group of key accounts, or your entire debtor book. It helps stabilise cash flow, improves access to finance, and enables you to trade more confidently, both domestically and internationally.
At Angelic Insurance, we help Australian businesses secure Trade Credit Insurance from leading insurers. Our brokers provide general advice to tailor cover to your credit risks, customer mix, and industry exposure.
How It Works
We make it easy to secure cover that safeguards your receivables and supports your growth with reliable payment protection.
Tell us about your customers and terms
We assess your credit terms, client locations, average invoice size, and whether you operate locally or export abroad.
Assess buyer risk
Insurers assess the creditworthiness of your customers using market data and financial insight to set coverage limits.
Compare policy options
We compare insurers that offer whole-of-turnover or key-account protection, including domestic and export credit risks.
Choose coverage structure
You can protect all receivables or select specific customers or markets. Optional political risk cover is available for exporters.
Policy activation and credit limit setup
Once approved, we issue documents and help manage credit limits for your customer base.
Ongoing risk management and claims
We assist with debtor monitoring, overdue notifications, and claims for unpaid invoices due to insolvency or non-payment.
Why You Need It?
One large unpaid invoice can cause cash flow issues or even jeopardise your business. Trade Credit Insurance helps protect your revenue and working capital.
Safeguards cash flow
If a customer defaults or goes bankrupt, your insurer can pay a percentage of the unpaid invoice protecting your income.
Enables safe growth
You can confidently offer extended credit terms to new customers or increase sales to existing ones with insurer backing.
Supports funding and lending
Insured receivables may be used as collateral, improving your chances of securing finance or higher credit limits from lenders.
Reduces collection costs
Insurers often provide collections support and debtor monitoring to help reduce the time and cost of chasing overdue payments.
Provides peace of mind
Trade Credit Insurance reduces uncertainty and lets you focus on building your business instead of worrying about bad debts.
How Angelic Insurance Can Help?
We help you choose the right level of coverage for your industry, customers, and growth plans without overpaying for unnecessary protection.
Compare trade credit specialists
We work with insurers who understand SME, manufacturing, export, and wholesale trade credit risks.
Tailor to your industry
We help protect businesses in construction, retail, agriculture, transport, and professional services.
Assist with credit risk assessments
We liaise with insurers to help determine suitable limits for your customers, based on their financial stability.
Streamline policy admin
We support limit approvals, overdue notifications, policy renewals, and audits to keep your coverage current.
Help with claims and collections
If a customer defaults or enters liquidation, we assist with claim submission and communication with the insurer.
Challenges Businesses Face Without Trade Credit Insurance
Without this protection, a single bad debt can create major disruption especially when relying on extended payment terms.
Unexpected customer insolvency
If a large client goes under, you may be left without payment harming your working capital and operations.
Limited insight into buyer risk
You may not have visibility into your customers' financial health, increasing the chance of offering credit to high-risk buyers.
Overexposure to one customer
Relying on a few key accounts can lead to financial strain if one fails to pay and there's no backup protection
Missed growth opportunities
Without insurance, you may hesitate to take on new customers or larger orders that could grow your revenue.
Reduced access to finance
Uninsured receivables may not be accepted by banks as collateral, limiting your credit options or borrowing power.
Case Studies: How Trade Credit Insurance Helped Real Businesses
Case 1 – Insolvency of key wholesale buyer
A Sydney food manufacturer lost $140,000 when a major retailer entered liquidation. Their policy reimbursed 85% of the outstanding debt.
Case 2 – Exporter protected from delayed payments
A Brisbane export company experienced payment delays from an overseas distributor. Trade Credit Insurance covered the loss and supported recovery efforts.
Case 3 – Credit limit enabled contract expansion
A Melbourne machinery supplier secured a large deal by offering longer payment terms. The insurer supported credit checks and coverage for the $500,000 client account.
Case 4 – Collection support reduces admin
A clothing wholesaler used insurer-provided collection services to recover debts in Europe. Recovery costs were included in the policy.
Frequently Asked Questions
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