Trade Credit Insurance

It is a way in which companies can protect themselves if customers who owe your company money are unable or unwilling to pay.

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Trade Credit Insurance

Why Socovered?

In a nutshell, Trade Credit Insurance is not just policy, it’s a service that monitors creditors and protects businesses. We can help take away the stress that late payment brings, protecting what you have and enabling you to concentrate on what you do best – growing your business.
  • We pride ourselves in getting to know our customers’ business and understanding their individual needs
  • We will use our specialist knowledge of the credit insurance market in order to tailor a credit insurance package that will cater for your requirements.
  • We will provide assistance should any of your customers need a higher credit limit facility
  • Should insurer(s) flag up a potential problem with the credit worthiness of any customer(s) going forward, we use our expertise to make sure you get fast, accurate and reliable information to enable you to take the appropriate action.
  • In the event of a claim, we will manage the process efficiently to ensure fast payment in order to protect your cash flow
  • We always endeavour to manage your credit insurance policy professionally, from inception to renewal, in order to be certain that you are receiving the very best level cover at the most cost-effective price.
Directors' & Officers' Liability

Why Socovered® Insure

It is a policy which pays you when your customers cannot or will not pay. This could be because their business has gone insolvent or they indefinitely delay payment.

As well as providing cover in the event of a bad debt, a credit insurance policy can also provide financial information on the credit worthiness of your customers, allowing you to make more informed trading decisions at the beginning and in the future.

Many insurers also have their own legal teams to help recover the debt.

We work with a range of clients from several sectors, including manufacturing, food and beverage, construction, logistics, financial institutions, wholesale and retail.

Companies within these sectors need Trade Credit insurance for many different reasons – they might be going through a period of growth, have previously incurred bad debts, have a concern over certain customers or an opportunity has arisen to increase exports in unfamiliar territories.

Trade Credit insurance is suitable for businesses with a turnover of more than R500,000 who offer credit to their customers

This information can be provided in the form of an insured credit limit that reflects their creditworthiness alongside insurers sharing their knowledge with their customers.  In the circumstance that one of your customers is experiencing difficulties, they may also be able to provide valuable insights and market intelligence for you.

For smaller credit balances, insurers allow you to grant your own limits; either from a credit rating agency (for example, Experian, Creditsafe or Graydons) or based on your previous trading experience with the customer.  This cover is known as a discretionary limit.

If the debt is due to insolvency then payments are usually received within 14 days subject to all information being received. If the debt is due to a customer refusing to pay, then there is a waiting period which varies from one insurer to the next but will be between three and six months.

The cost of the insurance is paid directly to the insurer (monthly or quarterly) on an interest-free basis.