Trade credit insurance: Secure your company against bad debts

Protect your receivables with trade credit insurance

How does credit insurance work?

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The role of  the trade credit insurer is to keep you up-to date. The risk experts will continuously analyse each of your customers to ensure their reliability. This guarantees you safe commercial development, and help you to work with the right partners. 

Risk Experts will analyze the creditworthiness and financial stability of your  insurable customers
and assign them a specific credit limit, which is the amount trade credit insurer will indemnify if that customer fails to pay.

How does credit insurance work?


When signs indicate a company is experiencing financial difficulty, you will be notified of the increased risk of selling to that debtor. An action plan will be established to mitigate and avoid loss.

If an unforeseeable loss should occur, the Trade Credit Insurer would pay you the claim benefit up to the amount defined in your policy terms.

What is credit insurance?

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Credit insurance allows companies to grant payment periods to their customers domestically and internationally with confidence.

Trade credit insurance protects your invoices against excessive late payment or – in the worst-case scenario – default by your customers.

It compensates for your loss by indemnifying you upto 90% .  A range of options are available so you can adjust your coverage to meet specific risks (such as political or manufacturing risks, litigation, etc.).

COFACE Group, through its insurance company partners in India, offers simple and flexible credit insurance products that are tailored to fit your size, sector and business ambitions.

What is credit insurance?


With trade credit insurance, your customers’ financial health is monitored, helping you make the right business decisions. Having a business credit insurance means you have easier access to financing.

In short, when you insure your sales in India and / or for export, you protect your cash flow and preserve your margins. You also optimise the management of your accounts receivable and safeguard your growth.

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Why opt for trade credit insurance?

Trade credit insurance offers 4 crucial services to help you in avoiding the risk of customer non-payment :

  • Manage your cash flow

    1 in 4 businesses face closure due to customer non-payment. Safeguard against unpaid invoices to secure cash flow and boost turnover worry-free. Business credit insurance is the only tool that prevents bankruptcy chains and associated job losses, vital for economic stability.

  • Enhance receivables management

    Business Credit insurance aids in identifying trustworthy customers and setting appropriate credit limits. Entrusting trade receivables to a reputable third party can also boost collection rates.

  • Simplify financing

    Credit insurance ensures optimized cash flow for meeting immediate needs. It's a mark of confidence that assures financial partners, facilitating future financing.

  • Focus on growing your company

    Trade credit insurance aids in evaluating risks and pinpointing reliable customers and partners for collaboration.

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Innovative solutions for better risk management

Credit management platform

Our secure online platform means it’s easy to manage your policy from A to Z. With CofaNet Essentials, you:


• Access information about your business partners

• Manage your client portfolio

• Manage your guarantee requests

• Report your unpaid debts

• Keep track of your claims


CofaNet also performs debtor risk evaluations and offers export features with the potential for more in-depth research.


And with the CofaMove mobile app, you can access CofaNet Essentials wherever you are and whenever you want.

Coface API portal

Discover a game-changing asset for more efficient credit management.
Coface API portal opens doors to seamless integration of Coface's powerful API solutions into your existing applications. 

  • Elevate risk management, enhance credit decisions, and fortify financial strategies effortlessly. 

  • Maximize efficiency, minimize risk: Coface API Portal is your strategic ally for a robust, data-driven approach to credit management. 

  • Revolutionize your processes today for a more secure and prosperous financial future.


> Visit Coface API Portal

Coface Dashboard

Coface Dashboard is our business intelligence tool that provides you with interactive reports to facilitate:


• Reporting and performance tracking

• Producing analyses ranging from macro trends to individual changes

• Identifying consolidated risks for groups of buyers

• Managing your programme, in particular by supporting your decisions, and customising the features of the tool and the risk transfer parameters

• The credit risk governance in your group

How much does credit insurance cost?

In general, Trade credit insurance premium  is calculated based on your turnover (the net sales figure you pull in as a company). Your past transaction history and the debtors with which you are trading are also taken into account.

When you apply for a quote, a two-part process will follow. First, the insurance company will assess the type of trade you are involved in and your overall business profile to determine a policy rate and terms. Then, the trade credit insurer will analyze your trading partners and their financial strength to determine the credit limit coverage that will be available to you.

For  example ; if a company has a t/o of over  INR 890 crore,the cost equates to a premium rate that varies on average between 0.1 and 1% of turnover. 
This figure is based on the volume of insurable business, the profile of your company – in particular its area of activity and history of claims – and your requirements (the type of coverage, specific options, etc.).

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Grow your business with a risk management expert


200countries covered

685billion € exposure

AM Best logoAStable outlook

Moody's logoA1Stable outlook

AA-Stable outlook

What does failure really cost you?


The extra turnover needed to make up for loss

The simulation above shows the additional turnover that your company must achieve to compensate for the loss due to a non-payment.

Get a free analysis of your client portfolio


Mark Harsent, UK Risk Manager, Denmaur Independent Papers Ltd

Having used credit insurance for many years, I’d recommend Coface because their response times on limits are exceptionally good compared with other providers, their underwriters know what they are doing and they are always happy to discuss any issues.


The results are clear-cut: since 2008, Diagast has not had any unpaid invoices on the events covered.


Our regular interactions with the teams at Coface help us analyse, evaluate and prevent our risks.

Contact our Credit Management Experts To learn more:

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Frequently asked questions


Coface Group, through its subsidiaries/affiliates or insurance partners, offers a comprehensive range of trade credit insurance, business information and debt collection services in approximately 100 countries.
In India, trade credit insurance and all related services are provided by Coface's insurance partners i.e. insurance companies duly licensed and regulated by the Insurance Regulatory & Development Authority of India (IRDAI), namely, ICICI Lombard General Insurance, IFFCO-Tokio General Insurance and Universal Sompo General Insurance.