Trade Credit Insurance

Trade Credit Insurance – What is it?

It is essentially protection against bad debt. CPR Insurance Services can provide Trade Credit insurance solutions, providing a range of domestic and export policies that can be tailored to suit a business and their risk management needs whether they are a local, regional or global company.

Who needs Trade Credit insurance? 

If a registered business is selling its goods and services on credit terms (eg offering 30 days to pay) then it is vulnerable to bad debts and should consider the protection of a trade credit policy. Benefits of Trade Credit insurance include: 

  • lost working capital is quickly replaced
  • policies can be assigned to a financier to increase borrowing capacity
  • our Insurers have an international information network helps provide an early warning of potential payment difficulties
  • policy holders are provided with a range of credit management tools to improve cash flow.

What does Trade Credit insurance cover? 

Trade Credit insurance covers the non-payment of trade debts following the event of insolvency (eg receivership, liquidation, and bankruptcy) and protracted default. If the trade debt is from an export transaction, the additional events of contract repudiation and various political risks can be included.
If a business sells goods and services on credit terms, a substantial percentage of their working capital is probably tied up as money owed from their customers. Trade Credit Insurance protects against these assets becoming bad debts. Claims are payable 30 days from our receipt of the Confirmation of Debt from the insolvency practitioner in charge of the failed debtor. 

Does Trade Credit assist my credit management? 

Trade Credit policies should be designed to complement and support good credit management and help you to trade with confidence. They will respond promptly to increases in credit limits and be available to assist if a customer slows in paying an account. Some Trade Credit Insurers provide assistance with the collection of debt when a customer doesn’t pay on time with preferred terms available from selected collection agencies.

What types of Trade Credit insurance are available? 

Insurers offers a range of products that can be tailored to suit each business and countries. We can advise details of various products in each market. 
Can a business insure sales to members of the public? 
No, Trade Credit insurance is for business to business transactions such as manufacturers selling to wholesalers, wholesalers to retailers or contractors to builders. 

How much does it cost? 

Premiums can be calculated as a percentage of turnover or for some product types, are offered on a fixed fee basis. Minimum turnover will generally need to be between $1,000,000 and $3,000,000 to be considered. Factors including industry, country of policyholder and buyer categories such as manufacturers, wholesalers or retailers, will influence the premium charged. However premiums start from approximately $13,000 plus charges for GST and Stamp Duty (if applicable) depending on the Insurer.

What information is required to obtain a quote? 

To obtain the most accurate quote for your business, you need to complete a proposal form. The proposal seeks information about the type and location of the larger debtors, the length of the terms of payment, history of bad debts and the credit control processes. 

Who can help? 

An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you with their skill, market knowledge and experience. Call a good one. 

Call CPR Experts who will save you

"Brokers should offer Trade Credit to every client"

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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