Trade Credit Insurance

Commercial Risks - Domestic (Australia & New Zealand)

Austbrokers Trade Credit offers security and confidence against the following type of commerical risks:

• Insolvency | You can be covered against your debtor not paying you because they have become insolvent eg a Liquidator or Receiver & Manager has been appointed.
• Non-Payment | Where the debtor hasn't strictly gone into a form of insolvency, but you can't get them to pay you.

Export and Political Risks (outside of Australia & New Zealand)

Austbrokers Trade Credit also offers full protection for export clients. When an overseas buyer doesnt want to use a Letter of Credit and prefers to trade on Open Account or Documentary Collection basis, Export Credit Insurance cover is the prudent alternative. We can arrange cover against the following export and political risk events:

• Contract Frustration due to war, riots
• Repudiation by the Buyer | This is a real risk especially in cases of high price or currency fluctuation
• Insolvency of or Non-payment by the Buyer
• Inconvertability of Currency
• Cancellation of Import/Export Licenses
• Default by Government-Owned Buyer
• Contract Cancellation by Buyer's Government

We are committed to arranging the best value cover for our clients. We guarantee service delivery through our expertise in the credit insurance market throughout a broad range of industries. We pride ourselves on our well-established relationships with Insurers and knowledge of their products.

Buyer Insolvency | Protracted Default

The cost of a bad debt needs to be counted as much more than simpy the loss of money you were due to receive. The truth is you can never make up for the cost of a bad debt. The impact is immediate, it can put stress on cash flow and will certainly damage profitability. Ask yourself now, what would be the consequencees of one of your largest customers failing to pay you?

For most businesses the value of the debtors ledger (the money you are owed) is one of the largest assets and yet it is often uninsured. Other important business assets are insured usually without question, yet the risk to a business of customer insolvency is perhaps one of the most volatile exposures.