Credit Insurance Specialists (02) 9416 0670

Why take the chance of your debtors not paying you?

We provide a tailored professional solution which guarantees an indispensable value to your business

Learn More

Never have a bad debt again

The 7 BIG COSTLY RISKS Often Faced by Credit Managers of Small and Medium Sized Businesses and How They Can Easily Be Managed

freereportimg

Why take the chance of your debtors not paying you?

We provide a tailored professional solution which guarantees an indispensable value to your business

Learn More

Never have a bad debt again

The 7 BIG COSTLY RISKS Often Faced by Credit Managers of Small and Medium Sized Businesses and How They Can Easily Be Managed

freereportimg

Why take the chance of your debtors not paying you?

We provide a tailored professional solution which guarantees an indispensable value to your business

Learn More

Never have a bad debt again

The 7 BIG COSTLY RISKS Often Faced by Credit Managers of Small and Medium Sized Businesses and How They Can Easily Be Managed

freereportimg

Why take the chance of your debtors not paying you?

We provide a tailored professional solution which guarantees an indispensable value to your business

Learn More

Never have a bad debt again

The 7 BIG COSTLY RISKS Often Faced by Credit Managers of Small and Medium Sized Businesses and How They Can Easily Be Managed

freereportimg

Insolvency Insurance


In the business world, there will always be people who cannot pay. As a business that sells goods and services in credit terms, it’s quite likely that much of your working capital is tied up in accounts receivable.

This is perfectly normal; however problems can arise when these invoices aren’t paid on time.

Whether it’s a small bill or a couple of months’ worth of unpaid invoices, it can ultimately lead to financial strain for your business.

The fact of the matter is that virtually every company has to deal with debtors – and consequently bad debt – from time to time. While some cases may result in nothing more than a little frustration, others can essentially ruin a business.

Need help on Bad Debt Insurance?

If one of your biggest customers became insolvent and could no longer pay off their debt, how would your business cope?

This thought strikes fear into the heart of many business owners, and it is little wonder why. Many businesses have faced bankruptcy themselves thanks to bad debt – don’t let this very real risk go unguarded!

At Niche Trade Credit, we offer insolvency insurance (commonly referred to as trade credit insurance, debtor insurance or bad debt insurance) to businesses both big and small. As expert insurance brokers, we’re able to find an insurance package that provides you with the right amount of coverage – whilst still adhering to your budget!

What exactly is insolvency?

Insolvency essentially relates to the state of not being able to pay debts that are owed. Therefore, an insolvent company is one that cannot pay off money owed to other businesses and individuals.

There are essentially two types of insolvency: cash flow insolvency and balance-sheet insolvency. The first type relates to a business that has enough assets to pay what is owed – yet doesn’t have the actual cash to make the payment (i.e. their money is tied up in assets such as equipment or property). In this scenario, the business will generally need to sell off assets in order to settle debts – and therefore, the business that is owed money  will have to wait before they receive payment.

This is a potential risk for any business, as waiting extended periods for payment(s) from debtors can lead to cash flow problems of your own. However, the second type of insolvency (balance-sheet insolvency) is a more serious situation; it means that the debtor doesn’t have enough money to pay off all their debts full stop. Many businesses that are balance-sheet insolvent enter bankruptcy (although not always), and therefore it often means that those who they owe money to are left with bad debt.

If your business has been left with bad debt as a result of a customer’s insolvency, you often need to absorb the loss. If it’s one of your main customers – or if you have a number of customers in this situation – it can lead to severe financial strain for your business.

In order to protect against bad debt caused by customer insolvency, many businesses take out trade credit insurance; it’s the only way to ensure your business is adequately protected!

How can we help?

At Niche Trade Credit, we understand just how serious bad debt can be. In fact, when a business becomes insolvent it can essentially cause other businesses to face the same fate. As insurance brokers we have access to a wide range of insurance options, many of which are designed to protect against the losses associated with customer insolvency.

If you’re worried that one or more of your debtors may be struggling financially, we can help to gain a clearer picture via a Debtors Health Check. We’re able to undertake discreet research in order to determine a debtor’s financial position, thereby allowing you to make arrangements accordingly. The sooner you know bad debt is a possibility, the better!

We’ll pair you with the right insurer

If you’re planning on taking out insolvency insurance, it’s crucial to ensure you find the right insurance company.

We can assist you in finding the right insurer – one that can meet your coverage needs and budget. In some cases, it makes sense for a business to only insure customers that are deemed to be a liability, while in other cases it’s better for a business to insure their entire customer base.

Whether you’re a small company looking for added security, or a large international firm needing to insure against substantial losses, Niche Trade Credit is able to assist. For more information regarding how we can help you to protect your business, please contact us today on (02) 9416 0670.

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