Understanding Trade Credit Insurance
Trade credit insurance provides the much-needed reliability by ensuring protection of capital, seamless maintenance of cash flows, enhancement of loan servicing and repayment, and security of earnings. Trade credit insurance is a smart investment for business entitities that sell their goods or services on credit terms to non govt. buyers. The domestic trade credit insurance covers only business to business accounts receivables.
Trade credit insurance plays a significant role in the economy as it boosts trade operations. It allows companies to extend credit to existing customers, or pursue new bigger customers. Which ,without trade credit insurance, would be deemed extremely risky especially in an unpredictable market.
Trade credit insurance also plays a crucial role in allowing companies to secure more sales from existing customers thereby increasing their profit margins. However, one must always bear in mind that trade credit insurance is not a substitute for credit management. It rather supplements or enhances the credit structure of a company.
A sound credit management system equipped with trade credit insurance is imperative for the smooth and successful running of any company. If you are one of those looking for trade credit insurance solutions, contact UNISON. This is one such company that has expertise on credit risk insurance. The UNISON team enjoys strong relationship with all Indian & international Credit Insurers and Reinsurers and provides 'Trade Credit Insurance' to many large corporates domiciled in India and overseas.
For more information on UNISON visit: https://unisoninsurance.net/