Managing risk in a turbulent market – why trade credit insurance matters

Cash flow is the lifeblood of any business, yet in today’s volatile economy, maintaining it is challenging. A robust risk management strategy that includes trade credit insurance can provide a vital safety net when customers or suppliers fail to pay.

Not all businesses manage cash equally well—some pay late, others default entirely. A single bad debt can trigger a domino effect, disrupting operations and threatening financial stability. Trade credit insurance mitigates this risk by ensuring your balance sheet remains consistent, even when customers fall into arrears or insolvency.

How does it help?
Trade credit insurance covers outstanding invoices when contractual terms are breached. But its benefits extend far beyond debt recovery:

1. Protection – Replaces unpaid debts and strengthens your ability to secure financing.
2. Growth – Enables safe extension of credit to new and existing customers.
3. Insight – Provides valuable data on customers and suppliers for informed decision-making.
4. Credit Discipline – Enhances credibility with lenders and stakeholders.
5. Competitiveness – Offers credit terms and risk protection across domestic and international markets.

With over 90% of B2B transactions involving trade credit, the risk is real. As Shaun Purrington of Avenue Insurance Partners notes, “Credit insurance is an effective tool that both safeguards working capital and unlocks strategic trading advantages.”

Insurance often suffers from a poor reputation due to inadequate advice and service. However, when implemented correctly, it is one of the most powerful financial instruments available.

Our mission since we launched in 2020 has been to deliver tailored advice that ensures clients remain resilient when challenges arise.

In today’s uncertain climate, where cash flow is critical, I wouldn’t be without trade credit insurance. My advice to you is to consider it too.

Phil Barton – Group CEO