Trade Credit Insurance for Export Businesses
Trade credit insurance is highly valuable for export businesses as it helps them navigate and manage risks associated with international trade transactions. It provides a safety net for exporters facing various challenges.
Even for experienced businesses, expanding into international markets can seem daunting. Trading abroad means your company will not only open up growth opportunities but it will also evolve operationally. There will be language and cultural barriers as well as foreign currency issues and risks, and different legal systems and processes to take into consideration. It is therefore vital that thorough market studies are undertaken.
You may think of trade credit insurance as just a service to mitigate risk, however, when you start trading with companies you are not familiar with abroad, having trade credit insurance in place gives you peace of mind.
Without trade credit cover you are reliant on local agents to provide market intelligence, and you are likely to need to get payments up-front.
We find that having trade credit insurance in place puts you in a more favourable position, and companies can better compete against other players in the marketplace and start winning business.
Trade credit insurance offers the ability to secure, stabilise and improve your cash flow. As well as providing scope for bigger trade deals, you are indemnified if the customer goes into insolvency or if there's a protracted default on a debt. This means you can make a claim and keep trading without missing a beat.
Of course, sometimes issues are going to arise which are unforeseen, and credit insurance provides what may be a critical safety net in times of trouble.
Trade credit insurance is a strategic risk management tool for export businesses, providing confidence and stability beyond domestic considerations.
It empowers exporters to navigate the complexities of international trade, protect their cash flow, and pursue growth opportunities in global markets. Collaborating closely with insurers ensures policies are tailored to your business’ unique needs.
International Market Insights
The trade credit insurance market has a significant ability to judge business performance from country to country and provide invaluable guidance – what works in the UK may translate well in some international markets, or it may not. Having access to these key insights provides you with a confident start, rather than just diving into the deep end of a market you may not really understand.
Through a tailor-made credit insurance policy, firms exporting to foreign markets can gain an understanding of vital transport systems, shipping methods and payment systems, as well as be able to meet the necessary requirements that signal you are dependable to do business with.
At Xenia we help our clients with this process – providing guidance and advice as well as benchmarking competitors. We help our clients manage their policy as they expand their operations - for example by requesting increased credit limits on certain customers.