May 13, 2025
Credit insurance is often overlooked and misunderstood within the insurance sector. Despite its significant potential to benefit organizations, there is a widespread lack of awareness regarding its advantages and applications in the financial services industry. By investing time to understand credit insurance and incorporating it into their sales strategies, brokers can secure a unique competitive edge. This not only enhances their market position but also offers essential protection for their clients’ cash flow and balance sheet, thus key components for a company’s success.
Credit Insurance Overview
Credit insurance is a policy that safeguards businesses from the risk of non-payment by their customers. It covers both domestic and international commercial transactions, protecting against losses due to buyer bankruptcy, insolvency, or refusal to pay. This type of insurance helps stabilize cash flow, reduce bad debt, and maintain a company’s balance sheet by ensuring timely payments and boosting profitability.