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What is Trade Credit Insurance?

Trade credit insurance — sometimes called accounts receivable insurance — is different from “insurance” in the traditional sense. It is a credit management tool that helps monitor, prepare, and protect your business from bad debt. It delivers world-class knowledge and data intelligence that empowers your trading decisions. Best of all, it is a guarantee of payment on your receivables. Globally, TCI supports nearly $3 trillion in trade on open terms each year. An estimated 80 to 90% of global trade is supported by some type of TCI.

According to a 2021 report by Allied Market Research, the adoption of TCI accelerated during the economic downturn of 2020, which served as a reminder of the potential for market disruption and lost receivable revenues. The global market for TCI reached $9.39 billion in 2019 and is expected to reach $18.14 billion by 2027, according to the research firm’s projections which represents a compounded annual growth rate of 8.6%.

What Trade Credit Insurance covers?

Trade credit insurance provides financial coverage for the losses that can happen when a customer does not pay for goods or services due to bankruptcy, insolvency or if payment is very late.

Trade Credit Insurance solutions for entities


Trade credit insurance allows you to increase market share, boost market penetration and expand into new markets without credit concerns as well as developing your current customer relations.


Trade credit insurance allows your business to access more funding as it protects your accounts receivable from bad debts and strenghtens your balance sheet.


Bad debts are considered as a loss. If a customer covered by the policy fails to pay you, you submit your claim and receive payment under the terms of your policy.

What is The Process?


Financial Assessment

TCS analyses the creditworthiness and checks the financial stability of your buyers.

Credit Limit Calculation

TCS will calculate your buyers credit limit, which is the maximum amount TCS will pay if your buyer fails to pay you.

Monitoring and Adjustments

TCS will monitor and keep you informed when there are adjustments made to the trading limit.

Business Growth

You will check the creditworthiness of your potential new buyer with the relevant credit information provided by TCS. TCS will confirm the agreement or explain if the request declines.


If a customer covered by your policy fails to pay you, you will provide TCS with full information. TCS will investigate and compensate you for the insured amount only if the policy terms are met.
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