Export Insurance Vs Trade Credit Insurance – What You Need to Know?

When it comes to exporters and importers, they generally provide services or goods to the companies in other countries. As the risks can be high during importing and exporting process, it is important to take proper insurance. For example, if the company with you are working with fails to make your payment as per the said credit terms, this can show a very bad effect on your business. If there is no cash flow, any firm would find it difficult to run their operations, especially the smaller firms.

What type of insurance is right for me? Is it Trade credit or export insurance? Many people often get confused when making their choice. It might be quite surprising to hear this, but both trade credit and export insurance work exactly in the same way. In fact, they are simply two terms used by the insurance companies for same product. In simple words, some insurers call it as export insurance, while some call it as trade-credit insurance.

The main purpose of this type of insurance is that they safeguard your company from bad debts. If your buyers fail to pay the agreed amount post delivering your goods or services, this policy will cover your loss. However, for this your insurer company will first try to recover your amount using the debt collection services. If this doesn’t happen within the specified time then the insurance company will compensate for you for the loss.

Most of the insurance companies will provide you around 70% to 90% on the pending invoice. However, this purely depends on the terms and conditions. If you are looking for some experts who can help you with the perfect solution for your credit insurance needs then choose Niche Trade Credit. They have the best team who listens to their clients with great patience and suggests the best solution for them.

How to choose an insurance company?

  • Choose a trustworthy insurance company always. Otherwise, you might end up buying the fake insurance. Read the client reviews online to get an idea about their company. Avoid choosing the companies with poor client reviews or bad ratings.
  • Choose a company, which responds to their client’s questions quickly. Choose a company whose customer support team will be available online 24/7. This will give you a chance to contact them whenever you want, without breaking your work schedule.
  • Choose a company who offers you the solution within your budget. There are some companies which sell the insurance at a much higher price. Cost of this insurance generally vary from company to company. Hence, it is important to compare the quotes to make right choice.

With export insurance, you can happily sell your services or goods to your clients in other countries without worrying about anything. You need not have to struggle for the cash settlements by opting for this insurance. Being a businessman, you have to think twice before making any decision. In short, check the pros and cons before doing anything.