Protect your business cash flow and reduce the risk of bad debt with Trade Credit Insurance.
Every business that offers customers credit terms faces one key risk, not getting paid. Whether it’s due to insolvency, late payment, or a customer simply defaulting, unpaid invoices can quickly create serious financial strain.
Trade Credit Insurance helps protect your business against these risks, ensuring you still get paid even when your customers can’t.
What is Trade Credit Insurance?
Trade Credit Insurance (sometimes called debtor protection) safeguards your business against losses from unpaid invoices. It covers you when a customer fails to pay because of insolvency, protracted default, or political risk (for overseas trade).
In simple terms, if your customer doesn’t pay, your policy steps in to help you recover the debt or compensate you for the loss.
This cover can also give you access to valuable credit information, helping you make informed trading decisions and grow safely with confidence.
Who Needs Trade Credit Insurance?
Trade Credit Insurance is suitable for any business that:
Trades on credit terms (e.g. 30, 60 or 90 days)
Sells goods or services to other businesses (B2B)
Operates in industries where customer insolvencies or late payments are common
Exports goods or services overseas
Has a high proportion of revenue tied up in unpaid invoices
It’s particularly beneficial for:
Wholesalers and manufacturers
Construction and engineering firms
Distributors and suppliers
Service-led businesses offering credit terms
Exporters trading internationally
What Does Trade Credit Insurance Cover?
Trade Credit Insurance can cover a wide range of situations that could affect your cash flow, including:
Customer Payment Defaults
- Insolvency or Bankruptcy – Covers losses if your customer becomes insolvent and can’t pay what they owe.
- Protracted Default – Protection if a customer continually delays payment beyond agreed terms.
- Third Party Funds Transfer – Covers losses resulting from fraudulent instructions causing payments to be sent to the wrong account.
- Third Party Funds Theft – Covers theft of money or assets belonging to others as a result of a cyber or criminal event.
Domestic and Export Cover
- UK and Overseas Trade – Protects your business whether your customers are based locally or abroad.
- Political Risk – Covers losses caused by political events, import/export restrictions, or currency inconvertibility affecting overseas trade.
Business Support and Additional Benefits
- Credit Risk Assessment – Access to up-to-date financial data and insight on your customers to help you make safer trading decisions.
- Debt Collection Support – Professional recovery of unpaid debts, reducing time and stress for your business.
- Funding Support – Many lenders view insured invoices as more secure, potentially improving access to finance.
- Safe Sales Growth – Trade with confidence, knowing your business is protected even when expanding into new or unfamiliar markets.
Why Trade Credit Insurance Matters
Bad debt can hit even the most successful businesses. A single unpaid invoice can have a ripple effect on your ability to pay suppliers, staff, and overheads, especially if it’s one of your largest customers.
With Trade Credit Insurance, you can:
- Protect your cash flow and profit margins
- Reduce exposure to customer insolvency
- Gain confidence to extend credit to new clients
- Expand safely into new markets (UK or overseas)
- Access better finance terms through insured invoices
Did You Know?
- Around 40% of a typical business’s assets are tied up in unpaid invoices.
- Over 70% of UK businesses have suffered a bad debt in the last year.
- For many SMEs, even one large unpaid invoice can be enough to threaten their survival.
Trade Credit Insurance gives you the peace of mind that your hard-earned income is protected.
Protect Your Business with Confidence
At The Yorkshire Broker, we work with a range of leading UK insurers to provide tailored Trade Credit Insurance solutions for businesses of all sizes.
We’ll take the time to understand your business, your customers, and your trading patterns, then arrange a policy that protects your cash flow and supports your growth.
Call us today on 01924 929070 to find out how Trade Credit Insurance can protect your business from the impact of bad debt.
