Credit insurance works by providing a guarantee that your insurer will pay up when your customer doesn't. For example if your customer declares bankruptcy after ...YouarehereHomeProductsandServicesFrequentlyAskedQuestionsWhatistradecreditinsurance?Ifyourcustomerfailstopay,tradecreditinsurancesafeguardsyourbusiness.Inmanyinstances,creditinsurersmaycoverupto90%ofthedebt.Creditinsurancecoverageusuallyappliestocustomerbankruptcyandpoliticalrisks,althoughitcanextendtomanyothercausesofnon-paymentasagreedinthepolicyterms. HowtradecreditinsuranceworksCreditinsuranceworksbyprovidingaguaranteethatyourinsurerwillpayupwhenyourcustomerdoesn’t.Forexampleifyourcustomerdeclaresbankruptcyafteryouhaveshippedgoodstothembutbeforetheyhavepaidyou,thecreditinsurancewillcoveryourloss. Theapplicationandday-to-dayoperationofatradecreditinsurancepolicywillvarybetweeninsurers.AtAtradiusHongKong,weoffertheModulaCreditInsurancePolicy,whichprovidestheflexibilitytoaccommodateindividualneedswhilemaintainingthesimplicityofasinglepolicy.However,mostinsurerswillechotheapproachofAtradiusandwillstartwithanassessmentofyourcustomerandtheapplicationofariskrating.Thisrating,alsooftencalledabuyerrating,isthelikelihoodofyourcustomerdefaultingonapaymentandwillbeusedbyyourinsurertoguidehowmuchofyourcredittheyarewillingtoinsureandotherterms. Ifyourcustomerfailstosettleyourinvoice,itisbesttotryandrecoupthemoneyfirst.Inmanyinstancesyourcustomermayjustneedextratime,orastagedpaymentplan.OurprofessionaldebtcollectorsatAtradiusCollections areexperiencedinamicablecollectionsandpromotingpositiveongoingrelationshipswithcustomers.Ifnecessarytheywillescalatetherecoveryprocess,liaisingwithliquidatorsandlawyersasneeded.ThisserviceisofferedatnoadditionalcosttoAtradiusCreditInsurancepolicyholders. Ifitisnotpossibletorecoverthemoneyowedtoyou,yourinsurershouldpayupinaccordingtothetermsofyourpolicy.Whetherthroughdebtcollectionorinsuranceyoushouldgetallormostofyourmoneyback.HowcreditinsurancemanagesyourcreditriskThisshortvideoprov