Trade Credit Insurance in India

Trade Credit insurance provides essential coverage for businesses, protecting their accounts receivables from potential losses due to various risks such as debtor insolvency or political uncertainties. This insurance policy is particularly beneficial for both domestic suppliers and exporters in India.

Trade Credit insurance policies are tailored to cover a client's portfolio of buyers, safeguarding against unpaid receivables resulting from prolonged defaults, insolvency, or bankruptcy. Insurers carefully assess the credit risk of the insured portfolio to determine suitable premium rates. Additionally, insurers may offer policies for single transactions or trade with only one buyer.

Key Features and Benefits of Trade Credit Insurance Policy:

• Accessible to both domestic suppliers and exporters.
• Ideal for businesses engaged in open account transactions.
• Offers coverage against delayed or non-payment of trade credit due to commercial or political risks.
• Provides protection against risks beyond a business's control.
• Enhances the financial health of businesses by improving their bottom line and facilitating funding access at competitive rates.
• Reduces the risks associated with customer insolvency, thereby increasing overall profitability.
• Acts as a valuable supplement to credit risk management strategies.

Capflow Consulting LLP's Smart SME series aims to equip SMEs and corporates in India with the necessary financial literacy to enhance their creditworthiness and secure optimal financing for sustainable growth.

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