Trade credit insurance is designed to protect your accounts receivable, generally one of the largest assets on a company’s balance sheet, against losses due to a customer’s financial inability to pay.
You should consider trade credit insurance if:
- you’ve ever worried about a U.S. or international customer’s ability to pay, (i.e. due to bankruptcy, political unrest in customer’s country, blocked funds or transfer difficulty, etc.)
- you want to improve your competiveness by offering payment terms to your customers instead of asking them to pay upfront,
- you would like to use your accounts receivable as collateral for financing from your financial institution.
- you’ve ever considered factoring, or selling your foreign receivables for cash, to increase your cash flow.
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Use our diagnostic tool below to find out which of our trade credit insurance options is best for you.
Your Credit Insurance Options
We offer two types of trade credit insurance:
Trade Protect is great if:
- You have a small number of customers outside of Canada that you would like to insure against non-payment.
- You want fast and easy online service.
- You want minimal policy paperwork.
Accounts Receivable Insurance is best if:
- You want to insure all of your receivables for all of your U.S. or international buyers
- You need flexibility in your policy.
- The nature of your product or service falls outside the qualification criteria for Trade Protect.
The above information describes, in general, EDC services and is not a commitment to provide them. Only the documentation supplied by EDC, in connection with any transaction, provides the full detail and terms and conditions.
To insure or not to insure?
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