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Trade Credit

International and domestic trade continue to pose business challenges, which have been heightened by inflation. As the risk of insolvency and default is ever-present, trade credit insurance can assist companies in navigating these critical business exposures by providing protection and enabling trade. 

Global trade has changed significantly due to the events of 2020. Now, more than ever, businesses should carefully consider the potential risk of customer insolvency or default.

During such unpredictable economic cycles, businesses need to consistently deliver on performance with security for sustainable growth across the global marketplace. With the backing of trade credit insurance, companies can effectively protect their balance sheets.

Our global Trade Credit team provides a wide range of trade finance solutions that can help you manage your receivables risk. As a leading advisor on trade credit risk and insurance arrangements against potential loss caused by the non-payment of accounts receivables, we nurture strong relationships with major insurers to negotiate cost-effective coverage for your trade credit risk. Our specialist local and multinational service teams also deliver a consistent and compliant service across your trade credit program.

Find out why you need Trade Credit Insurance and how it can benefit your business

  • Do you want to do business with more customers?
    Trade Credit Insurance enables companies to extend credit to customers while reducing the risk of non-payment, facilitating secured sales expansion (e.g. expanding to new geographic areas) and reducing dependence on Letters of Credit. In instances where Letters of Credit are issued from non-investment grade countries, Trade Credit Insurers may also be able to provide you with cover on the banks issuing the Letters of Credit.

  • Is access to liquidity critical to your business?
    Trade Credit Insurance may be accepted as collateral to improve lending facilities with financial institutions. This may deliver additional funding capabilities — potentially at a more cost-effective rate — to support a company’s growth.

  • Are your company’s critical assets insured?
    As accounts receivables may constitute upwards of 40% of assets on the balance sheet, many public firms in particular use Trade Credit Insurance as a strategic solution to enable profitable growth and an assurance to shareholders that their large key assets on the balance sheet are protected.

  • Is your business resilient against unforeseen events that will impact your business’ cash flow?
    Trade Credit Insurance can protect your business by mitigating losses from buyer defaults due to unforeseen events, such as those caused by insolvency, non-payment or political risks.

Trade Credit Insurance enables companies to extend credit to customers while reducing the risk of non-payment, facilitating secured sales expansion (e.g. expanding to new geographic areas) and reducing dependence on Letters of Credit.  Trade Credit Insurance may also be accepted as collateral to improve lending facilities with financial institutions to deliver additional funding capabilities to support a company’s growth.

Our expertise

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Expand your business with confidence in Hong Kong and beyond.

 

FAQs

Our people

Jodi Seah

Trade Credit Sales Leader, Asia Credit Specialties

  • Singapore

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Gloria Lam

Trade Credit Practice Leader, Credit Specialties

  • Hong Kong