SME Credit Insurance
Safeguard your profitability, creditworthiness and trade confidently knowing that you can recover outstanding funds if debtors default.
Mitigate risks to cash flow and profitability caused by non-payment
SME Credit Insurance protects your business from cash flow problems caused by debtors who are unable or unwilling to pay. It is an insurance policy for your debtor’s book with additional debt and risk management features to secure one of your largest financial assets.
No business can afford to carry the burden when customers fail to pay on time, or at all. We help our clients to manage these risks better and provide insurance against loss of income due to debtors defaulting, liquidations or being placed in business rescue. Our services are customisable and suitable for businesses of any size across any sector.
Benefits of SME Credit Insurance
The advantages of insurance and risk management services are vast!
- Prevent loss of income, negative cash flow and potential insolvency.
- Claim and recover funds on outstanding customer balances up to their specified credit limit.
- Maintain strong supplier relationships. Ensure your business has cash on hand to pay creditors early to uphold good-standing relationships and qualify for discounts.
- Peace of mind and confidence to expand trade opportunities.
- Gain a competitive advantage with the ability to offer attractive payment terms.
- Enhanced debt and risk management.
- Improve creditworthiness to secure loans. Reduced risk makes your business more secure and attractive to financers.
- Debtor insurance, specific to your size of business, industry and clients.
- Better understanding of implementation and claims management.
- Facilitation from your insurance company from initiation to collection.
Getting Started with Business Credit Insurance
We understand that every business is unique, so we tailor your credit insurance policy to suit your specific needs and budgets.
- The creditworthiness and financial stability of your customers are assessed.
- A credit limit will be calculated, and a maximum amount will be set for each customer.
- The maximum amount is the limit of what you will receive if the customer fails to pay.
- You should only trade up to the specified insured limit.
- You will still perform credit checks on new customers, and your insurance will then be reviewed on these new customers.
- Your debtors will be monitored for any adverse information, and you will be notified of this as soon as a default
- Limits can be increased or decreased at our discretion based on our regular credit assessments and business intelligence.
- When a customer fails to pay, you will put in a claim against their outstanding balance.
More about SME Credit Insurance
In tough economic times, the risk of credit customers defaulting or closing down is a stark and ever-increasing reality for all businesses.
Every company stands to benefit from insuring their debtor’s book and alleviating pressure on their financial assets. Credit insurance is particularly important for businesses that:
- Offer credit or want to extend payment terms to their customers.
- Want to grow their international business opportunities while avoiding the risk of non-payment due to currency, political, or legislative restrictions.
- Require a loan to expand. Banks and other lenders favour businesses with credit insurance as their cash flow risks are reduced, providing surety that they can service their debt.
- Need to access funds tied up in outstanding invoices to take advantage of discounts from their creditors.
- Want to trade confidently with the ability to offer attractive payment terms to customers.
We offer a range of insurance products to suit all industries ranging from SMEs right through to multi-national organisations.
Our debtors insurance services extend across a broad range of sectors such as, but not limited to:
- Importing and exporting
- Engineering and construction
- Transport and logistics
- Wholesale and Retail
- Printing and packaging
Credit Insurance goes by many names. It is also known as debtors insurance, trade credit insurance, business credit insurance or export credit insurance. In all instances, credit insurance is insurance against your accounts receivable. It protects your business from losses when customers either refuse to pay, or are unable to service their debt to you due to insolvency, bankruptcy, or protracted default.
As with any other insurance policy, credit insurance pays you in the event of a loss that is out of your control, provided that specified conditions of your cover are met. The conditions are set upfront before your cover commences. A distinct advantage of credit insurance is that it includes risk mitigation features that strengthen your debt management capabilities –so that you can avoid needing to claim as best as possible.
Transaction Capital Business Solutions, previously Rand Trust, is an established company with over 60 years’ experience in providing funding to a variety of businesses throughout South Africa.
As a division of the listed entity Transaction Capital Ltd, we have an excellent standard within areas of high-risk management, compliance, governance, transparency and ethics.
We have earned a solid reputation for working with our clients to meet their specific and unique needs.
“Procam is very happy with its relationship with Transaction Capital Business Solutions. Your service is excellent, and the speed with which you responded to our cash flow predicament was impressive. Therefore, you added 70% value to our business.”
– Nigel Greenwood, Finance Manager, PROCAM
Do you need access to boost cash flow?
Debtor Finance offers a simple solution to manage working capital effectively without having to take on additional debt or extend lines of credit. It enables you to alleviate cash flow problems using your debtor’s book to secure advanced payments on your invoices.
A property backed loan is a fast, convenient way to access business funding at lower interest rates than traditional lines of credit. This solution provides a secured business loan using your residential, commercial, or prime industrial property as a guarantee.