Trade & import · trade credit insurance
Insurance against your customers not paying.
Protects you when a customer becomes insolvent or defaults. Pricing depends on your debtor book quality, industry, and trading patterns. Often paired with invoice finance for full receivables protection. Cashtech makes introductions to trade credit insurance specialists.
What it is, when it fits
Plain English, with the trade-offs.
Trade credit insurance covers losses from customer non-payment due to insolvency, prolonged default, or political risk (for export trade). It's an insurance product (not a finance product), regulated under insurance licensing rather than credit licensing; Cashtech facilitates introductions to specialist trade credit insurance providers but does not place credit insurance directly. Coverage typically applies to a debtor book with whole-turnover policies (cover everything) or selective single-buyer policies (cover specific high-risk customers). Premiums run 0.1% to 0.5% of insured turnover annually, with policy excess (your retention before insurance pays) typically 10% to 20% of any claim. Trade credit insurance is often paired with invoice finance: the financier accepts the insured invoices at higher advance rates (sometimes 100%) because the financier inherits the insurance protection. Suits B2B businesses with concentrated debtor risk, exporters to higher-risk markets, and businesses where bad-debt losses would be material to operations.
Pen on a settlement document, two people deciding together.
Typical scenarios
B2B services with debtor concentration
Why: Top 5 customers = 60% of revenue; one default would be material.
Outcome: Selective trade credit insurance on top customers, premium 0.3% of insured turnover.
Exporter to higher-risk markets
Why: Exports to emerging markets; political and credit risk both material.
Outcome: Whole-turnover trade credit insurance plus political risk cover, EFA-coordinated for some markets.
Manufacturer with B2B receivables
Why: $2M debtor book, mid-market customers, occasional defaults.
Outcome: Whole-turnover trade credit insurance, paired with invoice discounting at 100% advance on insured invoices.
Wholesaler with thin margins
Why: Margins 8 to 12%, single bad debt absorbs months of profit.
Outcome: Trade credit insurance reduces bad-debt provision, releases working capital tied in reserves.
Lenders for this product
Who we work with.
- Atradius
- Coface
- Allianz Trade
- QBE Trade Credit
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Debtor book review
We review debtor concentration, customer credit profile, and historical loss ratio before approaching insurers.
- 02
Insurer introduction
Four main carriers cover the Australian market. We make the introduction; placement runs through the insurer (Cashtech facilitates rather than places).
- 03
Quote and policy structure
Insurer quotes typically return within 1 to 3 weeks. We help compare structure (whole-turnover vs single-buyer, excess level, per-customer limits) before binding.
- 04
Ongoing review
Annual policy renewal; we support comparison across carriers at renewal and adjustments to coverage as the debtor book evolves.
Indicative pricing & terms
Ranges, not promises.
Rate range
0.1 to 0.5% of insured turnover annually
Loan size
Cover up to debtor concentration limits
Term
Annual policy, renewed yearly
Security
Insurance policy; no security taken
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Whole turnover vs single buyer cover?
Whole-turnover policies cover every customer in your debtor book up to per-customer credit limits. Single-buyer policies cover specific high-risk customers selectively. Whole-turnover is simpler operationally and usually cheaper per dollar of cover; single-buyer fits when only specific exposures matter.
Claim process?
Trigger events are typically customer insolvency or prolonged default beyond an agreed period (often 90 days past due). Claim documentation requires invoice copies, evidence of recovery attempts, and statutory documents (e.g., insolvency notices). Payment usually within 30 to 60 days of accepted claim.
Cost calculation?
Premium is calculated as a percentage of insured turnover, with adjustments for industry, geography, debtor concentration, and historical loss ratio. Typical range 0.1% to 0.5%; higher-risk profiles can reach 1%+. Premium is fully tax-deductible.
Industry restrictions?
Some industries (financial services, specific high-risk segments) are excluded by most carriers. Most B2B sectors have available coverage; specifics depend on insurer appetite and your trading profile.
Integration with invoice finance?
Trade credit insurance is often paired with invoice finance at higher advance rates because the financier inherits the insurance protection. Some financiers explicitly require trade credit insurance on weaker debtor portfolios.
Limits and excess?
Per-customer credit limits cap how much exposure on each customer is insured; excess (typically 10% to 20%) is the retention you carry on any claim before insurance pays. Both negotiable based on policy structure and premium.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for trade credit insurance or, if it isn't the right fit, an honest signal of what is.