Life is inherently risky; it’s impossible to protect yourself from every single risk you’ll face in a lifetime. As a business owner, you’re bound to face far more financial risk than the average person. After all, it goes with the territory. However, many of these risks can be identified and lessened – in fact, many financial risks can actually be insured.
In insurance terms, risk can be defined as the chance that something unexpected – and potentially harmful – could happen from a financial perspective.
At Niche Trade Credit, we understand that there are many financial risks associated with setting up and running a business. As a trade credit insurance broker, we can organise risk insurance for small, medium and large businesses alike. Tailoring our services to suit your specific needs, you can trust us to support you when things don’t go according to plan.
When you insure against financial risk, you are essentially safeguarding your business – and in the process, reducing the chance of a possibly stressful situation arising. This type of insurance spans a broad range of different financial risks a business may face, from financial strain caused by bad debt, through to contract repudiation risks faced by exporters.
What types of insurance do we offer?
Specialising in trade credit insurance, we’re able to assist our clients when it comes to a wide range of different products. As experienced brokers, we’ll be able to ascertain which product is right for your business’s specific needs and connect you with the ideal insurer.
Commercial risk insurance
This type of insurance is designed to protect businesses from financial loss associated with some type of ‘non payment’.
As a business, you may be able to absorb some of the strain when a client cannot pay. However when bad debt becomes overwhelming, it can potentially lead to financial ruin.
There are many reasons why a debtor may not be able to pay you. These commercial credit risks include:
- Insolvency or bankruptcy
- Insufficient funds
- Contract cancellation
- A buyer refusing to take a shipment
- Refusal to pay for goods and services that have been received
Want to know more about Insolvency Insurance?
Whether you need to insure your entire client base or a couple of high-risk clients you consider to be a liability, we can provide you with an insurance package that is ideally suited to your requirements.
Export and political risk insurance
As an exporter, you’re faced with a wide range of different concerns that don’t apply to the average business. Export and political risk insurance is the best way to ensure your business is safe in a financial sense.
Some international clients prefer to trade on an open account or documentary collection (rather than a standard letter of credit). If you have clients that prefer to trade in this manner, then this type of insurance is very important.
When you export to foreign shores, there are a wide range of risks you’re likely to face as a business; risks that can be easily insured against.
- Contract repudiation
- Rejection of goods on delivery
- Non payment or insolvency
- Suspension/cancellation of import/export licenses
- Payment default by a government organisation
- Cancellation of buyer’s contract by a foreign government
The insurance brokers you can trust
Here at Niche Trade Credit we can help you insure against serious financial risks your business may face in the future.
Whether you’re a small business looking to protect itself from bad debt or a large international company that needs greater security surrounding its export endeavours, we can provide you with the peace of mind you need.
As experienced brokers, we take the time to get to know your company; we gain a sound understanding of what it is you do and what financial risks you’re likely to face. Taking this into account, we then recommend a suitable insurance product that provides you with the coverage you need. We provide an end-to-end service and organise everything for you, giving you more time to spend on important matters – such as running your business!
So do you really need trade credit insurance?
It’s certainly a legitimate question and one that we’re asked all the time. In response, we generally ask businesses to consider this: how would you cope if your largest customer failed to pay you? If you think your business would struggle, then insurance is almost certainly a good idea.
If you would like more information regarding how we can help you safeguard your business from bad debt and other financial risks, don’t hesitate to contact our friendly team today on (02) 9416 0670.
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