Trade Credit Insurance

Q: I've been dealing with the same buyers for years. Do I really need to worry?

Many businesses trade with long standing customers that seem well funded. They believe payment can be relied on. However, even the strongest commercial concerns can be affected by the economic cycle and commercial trends.

Trade Credit Insurance is a financial safeguard for your business, protecting against the risk of non-payment from customers. At Allianz Trade, we understand that extending credit is essential for growth but comes with inherent risks. Our Trade Credit Insurance covers your accounts receivable, ensuring you get paid even if customers default, become insolvent, or face financial difficulties.

In today’s unpredictable economic landscape, managing credit risk is crucial. With Trade Credit Insurance, you can confidently extend credit to new and existing customers, knowing your cash flow is protected. This not only stabilizes your finances but also empowers you to seize growth opportunities both domestically and internationally.

Choosing Allianz Trade means partnering with a global leader in trade credit insurance, backed by over 125 years of experience. Our extensive expertise and global reach ensure comprehensive coverage tailored to your specific business needs. Trust in our customer-focused approach to develop solutions that keep your business resilient and competitive.

Get Your Free Guide to Trade Credit Insurance

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In this free digital guide, you will learn:

What trade credit insurance is and how it works to protect your business
How trade credit insurance helps different roles in different-sized companies
How much it costs, what it covers, and so much more

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Benefits of Trade Credit Insurance

Protection: Our policy quickly replaces the money lost through bad debt and strengthens your cashflow
Growth: Expand confidently domestically or internationally with a strong risk tolerance when accepting new orders
Insight : Benefit from permanent monitoring of the financial situation and credit risk of your customers and prospects
Profitability: Optimized recovery of unpaid debts at Minimal management costs
Funding: Receivables protection improves banks’ lending confidence
Competitiveness: Improve customer relationship by offer credit terms even when competitors can’t

How Much Does Trade Credit Insurance Cost ?

How your premium is determined:

Your B2B turnover
The countries where you operate
The type of customers you deal with
Your payment terms
The desired coverage percentage

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In many cases, the premium for credit insurance is less than 0.5% of turnover. Compare this to the average number of write-offs on your receivables, and you'll see that the investment is quickly recouped. 

Credit insurance comes in various types and sizes, which also determine the price. For some credit insurances, you set a fixed price per turnover class. For most common policies, we calculate the premium as a percentage of your turnover.

Trade Credit Insurance FAQs

What kind of business needs trade credit insurance?

Every business can benefit from good credit management. Trade credit insurance is one of the most important tools for that purpose. If you’re selling on open account terms to other businesses, then trade credit insurance could bring many benefits. Even if you trade on other terms, we have services that can support and strengthen your trading activity.

I work in a small business. Is trade credit insurance right for me?

Our insurance is designed for businesses with sales of at least $5 million per year, but companies with sales of as little as $1 million sometimes find our services to be a good fit, depending on the situation. If your sales are lower than this, our insurance may not be the most suitable product for you. We suggest you speak to your insurance broker or business bank manager, who will be able to point to other ways you can protect your business.

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I’ve been dealing with the same buyers for years. Do I really need to worry?

Many businesses trade with long-standing customers that seem well funded. They believe payment can be relied on. However, even the strongest commercial concerns can be affected by the economic cycle and commercial trends.

One Allianz Trade customer, EDPA, experienced this scenario when one of their oldest customers filed for bankruptcy and disputed EDPA's receivables. Read the EDPA case study for details.

"The Allianz Trade team made us feel so comfortable about the situation and confident that it would get resolved. When you are facing an enormous financial loss, having someone knowledgeable, supportive, and responsive in your corner can make all the difference. We are very, very happy with the service we received."
– Alp Benadrete, Managing Partner in Charge of the Home Textile Division for EDPA

It takes considerable investment in data collection to keep track of customers’ financial health and to evaluate the risk of non-payment. We make that investment so you don’t have to and we make the analysis available to you. Insurance backed by insight allows you to trade with peace of mind through all phases of the cycle – today and tomorrow.

I have some long-term deals (more than a year) in progress. Can I cover them?

Yes, we have experience in supporting longer term transactions (for example, multi-year contracts). Get in touch with us and let us know what you need. We’ll be pleased to make recommendations.

Will trade credit insurance help me if political events affect payments?

Yes. Exporters concerned about political events can also benefit from coverage for non-payment as a direct result of events in the buyer’s country. Typical situations in which international credit insurance companies can help include war or cancellation of a contract by the local government. Another example is when a government imposes rules that stop goods from being exported or imported or when regulations prevent hard currency transfers.

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Find the Best Trade Credit Insurance for Your Company

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Trade Credit Insurance For Small Businesses

Learn how trade credit insurance data helps businesses with up to $25 million in annual revenue identify creditworthy customers, protect receivables, and safely grow sales.

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Trade Credit Insurance For Mid-size Companies

Expand your business in domestic or international markets and protect your key financial accounts. Explore trade credit insurance for companies with revenue exceeding $25 million.

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Trade Credit Insurance For Multinational Companies

We build and manage robust, global insurance for credit risk and related services specifically for you, to give your multinational enterprise the confidence to trade in this complex environment.

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Why Choose Allianz Trade For Trade Credit Insurance

DEDICATION

70,000+
Clients worldwide

INSIGHTS

83 Million
Businesses monitored

ASSURANCE

AA Rating
by Standard & Poor's

Allianz global customer satisfaction rating

Total reviews: 445

That's what clients said about us

, 02/21/2025

Alyssa Martell is a great asset to BulkLift! I have had immediate response and or resolution to my inquiries. We are very satisfied with the customer service she has provided to date. And our collaboration with the Team as a whole has been positive. Thank you

, 02/06/2025

I wish turnaround time was a little quicker. But great customer service. Thank you.

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Our expertise and commitment

Allianz Trade is the global leader in trade credit insurance and credit management, offering tailored solutions to mitigate the risks associated with bad debt, thereby ensuring the financial stability of businesses. Our products and services help companies with risk management, cash flow management, accounts receivables protection, surety bonds, and e-commerce credit insurance ensuring the financial resilience for our client’s businesses. Our expertise in risk mitigation and finance positions us as trusted advisors, enabling businesses aspiring for global success to expand into international markets with confidence.

Our business is built on supporting relationships between people and organizations, relationships that extend across frontiers of all kinds—geographical, financial, industrial, and more. We are constantly aware that our work has an impact on the communities we serve and that we have a duty to help and support others. At Allianz Trade, we are strongly committed to fairness for all without discrimination, among our own people and in our many relationships with those outside our business.