Trade Credit Insurance Toronto

It’s pretty common for many businesses today to handle all their transactions through credit. This is especially true for any business that operates or sells goods online. The trouble with credit though, is that it is not as There is always a chance that something could happen unexpectedly or go wrong during the transaction. Trade credit insurance in Toronto ensures that you will still get paid if a credit payment doesn’t come through. 

Earning enough money to support you and your family is already stressful enough as it is. You shouldn’t have to worry about credit payments defaulting. With trade credit insurance, you can focus on making sure that your business is operating profitably. We’ll handle your protection.

What Is Trade Credit Insurance?

Trade credit insurance goes by a number of different names, including accounts receivable insurance, business credit insurance, export credit insurance, and more. The purpose that it serves is to protect your company’s accounts receivable from any loss due to credit risks. What this means is that if a buyer does not or cannot pay, a percentage of the outstanding debt will be covered by your insurance policy.

You’d be surprised how many invoices can become delinquent (1 in 10!), which is why you want to make sure that you and your business are still able to operate even when payments do not come through. If this occurs, you will just have to file a claim with your insurer in order to receive payment.

Close up of two credit cards

Why Is Trade Credit Insurance so Important?

There are a variety of reasons why trade credit insurance in Toronto is so important. The first is the most obvious: better control over financial risks. If a customer develops unanticipated financial problems that keep them from paying what they owe you, trade credit insurance will allow you to more easily monitor any customer’s creditworthiness. This will ensure that you extend credit to individuals who are more likely to pay it.

Additionally, with trade credit insurance, your business will have a much better cash flow. Every business requires an adequate amount of cash flow in their day-to-day operations so that they can pay any necessary expenses. If your customers fail to pay their bills, you can still get the money you need in order to continue operating your business.

Finally, if you have credit insurance you can give yourself a competitive advantage over your top business competitors. You will be able to offer your customers more competitive financing options such as better payment terms or higher credit limits.

What Does Trade Credit Insurance Cover?

Trade credit insurance in Toronto covers a wide range of potential risks and scenarios. This oftentimes includes:

  • Buyer Insolvency: The most common type of credit coverage, policies may specify what kind of events qualify as insolvency, which can include bankruptcy or a court-ordered liquidation.
  • Protracted Default: What this means is that a customer is unable to pay the amount that they owe by the insured date, which includes any extensions that have been afforded by the seller.
  • Political Risks: This is in regards to exporters and covers political risks such as piracy, embargo, confiscation, expropriation, currency incontrovertibility, as well as other acts of public or government authority.

KASE Insurance offers customizable insurance plans in order for you to get the coverage that you need without having to pay for unnecessary coverage riders.

Who Needs Trade Credit Insurance?

If your business sells goods or services to customers on a credit basis, trade credit insurance in Toronto is right for you. There are a number of risks associated with this type of payment model and you don’t want to put you and your business in a position where you’re not getting paid for the work that you do. 

Exporters are also included in KASE Insurance’s trade credit insurance policies in Toronto. If a buyer is unable to pay you by the agreed-upon insured date because of political risks, you are protected.

Why Go With KASE Insurance?

At KASE Insurance, we are committed to providing our clients with the highest degree of satisfaction. We work with a wide range of businesses and individuals across all kinds of industries and sectors in order to provide them with the insurance coverage that they need. When you choose us as your insurance broker, we want you to walk away with the peace of mind you deserve knowing that you are fully protected at a reasonable price. We work hard to give you the policies you need at the rates you love.

If you are looking for comprehensive trade credit insurance in Toronto, look no further than KASE Insurance. Protect yourself tomorrow by contacting us today.