Trade credit insurance (TCI) is an effective financial risk management tool that helps protect customers against losses in the event of a buyer's default.

Risk-averse clients should not be worried, but it is advisable to keep an eye on them, as no company is immune from bankruptcy. There are cases where concessions are made to customers who always pay on time by delaying the payment of their invoice. However, if even one such customer were to go bankrupt, the customer would lose part of the planned revenue due to the exemptions applied to the customer.

Small businesses are usually insured from a turnover of €500 000. For small businesses, this service is relevant because the bankruptcy of even one buyer can cause significant financial problems. In such a case, TCI could help stabilise the situation and avoid unexpected losses. In addition, small businesses are always looking to grow and working at their own risk can be too loss-making. TCI helps to create sustainable risk management processes within a company.

TCI can help a company grow in several ways. Using TCI:

• It allows you to find new customers, offer a deferred payment service and increase your turnover. Selling goods or services and using a deferred payment service can lead to a higher volume of orders.
• It saves time in evaluating potential buyers and makes it easier for managers to make decisions on potential partners;
• a wider range of financing services useful for the development of the company;
• access to a database of insurance companies.