Trusted Trade Credit Insurance Brokers

in Australia

Protect your business against cash flow issues with trade credit insurance. DAS Insure is an established and experienced trade credit insurance broker, working with businesses from across Australia to find the right level of cover to meet their needs. Contact our knowledgeable team today and we will work with you to find a solution that is right for your business.

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Credit Insurance:

A Risk Management Tool

Most businesses insure their physical assets, their plant, their equipment but overlook their Debtors Ledger which on a typical balance sheet represents an average of 40% of their current assets.

Understanding Trade Credit Insurance (TCI) – TCI is a business insurance product that protects a seller against losses from non-payment of a commercial trade debt. It makes sure invoices will be paid and enables companies to reliably manage the commercial and political risks of trade that are beyond their control. Capital is protected, cash flows are preserved, and profits are secure from these events of default.  

How Does a Credit Insurance Policy Work

Benefits for a typical trade credit client linking their credit management with the insurers risk assessment, risk monitoring and claims management:
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Claims Payment

Email contact@dasinsure.com and ask us about trade credit insurance today.

Claims Payment

If a loss occurs, the indemnification aspect of the policy is triggered. A policyholder would file a claim with supporting documentation, and the insurer would pay the claim benefit, for a domestic insolvency claim typically within 30 days from receiving all necessary documents. As a minimum the following information is needed: A statement of account detailing the unpaid amount and invoices. A copy of all your unpaid invoices, evidence of any past trading history and evidence of the insolvency of the buyer and that your debt is outstanding in the insolvent estate). All polices attract a deductible ( i.e. an amount which is not covered by the insurer) and an insured percentage depending on the policy type and size of the insured company.

Annual premiums for your trade credit insurance policy generally cost between a tenth and a quarter of a cent for every dollar of your total sales for the year. This means that if you make $2 million in sales, you can expect to pay around $2,000 to $5,000 in yearly premiums.

Sources of risk and types of policies available:

Sources of risks that may be covered are Commercial, due to Creditor Insolvency or continued non-payment, Political, a non-payment due to an event in your client’s country (e.g. currency transfer restriction, expropriation, contract frustration) or Environmental, non-payment linked to a natural disaster.

Types of Trade Credit Policies available:

Comprehensive cover also known as Whole of Turnover: a Customized policy covering the entire buyer portfolio; Export and/or Domestic Turnover. Negotiable Discretionary Limit catering for easy administration of smaller accounts, so your credit management team can approve limits up to a certain threshold.
An easy to manage policy for small to medium sized companies, providing access to buyer information, collection of unpaid bills and up to 90% of indemnification for undisputed invoices in the event of insolvency or slow payment (Protracted Default).
For customers with an excellent internal credit management seeking the protection for unexpected or major loss events across their entire portfolio.
Protection of the Key Accounts over an agreed balance, optional non –cancellable credit limits.
Advance payment to Suppliers cover, Binding orders, Consignment stock, Pre-shipment cover, Receivable Purchasers, School Fee programs, Financial Institution, Retroactive Buyer coverage and more.
the premium is a percentage rate of insured turnover, excluding cash sales, inter-company business, sales to government and agreed debtors. Insurable turnover, type of industry, number and amount of bad debts over the last three years, the credit control procedures in place and the credit worthiness of the larger debtors are all taken into account by the insurer.