TRADE CREDIT INSURANCE

 We in the business constantly face one threat if any of our customers get insolvent or if any of our customers stop payment for a long or deny payment altogether...

This is normal in any business we have to go through this situation. In all the above-said conditions, we have one issue common that our precious working capital gets struck.

We do meet the customer and do the follow-up regularly either by mail, phone or letter.

We do all these, but in the whole process we lose time and money, situation sometimes becomes so scary that we lose our future order or present work gets stuck due to the nonavailability of working capital.

Here we can choose one Insurance product called "TRADE CREDIT INSURANCE".

It is also the same insurance product in which we take it for the unforeseen eventuality.

Here only difference is peace of mind as we have due to insurance now how it works.

We do an invoice as per our regular practiceanythinghing happens due to the above-said reason.

We have to lodge a claim with the insurance companherewithwith claim we have to give all details of the transaction to the party. 

Here insurer will check the payment record of a particular party. With all relevant documents insurer will see the payment condition and track record of the company.

After all this, the insurer will take calls and will engage with a particular parMeanwhilehile your 50% of the invoice amount will be released by the insurer in due course of time so you can do your normal business activity.

The insurer will take the case to a conclusion so you get your full invoice amount in due course of time.

But here as you get money in due time your business does not get affected.

If you have taken a bill discount facility from the bank for a few days you get respite from working capital woes but interest increases.

Even if you have taken OD/CC limit here it comes in handy for you to save interest.

Location: India

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