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Oracle RMS Insurance

Trade Credit Insurance

Commercial Insurance — Oracle RMS Insurance

Trade Credit Insurance

Protect your accounts receivable and cash flow when customers fail to pay due to insolvency or protracted default.

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Trade credit insurance protects businesses that sell goods or services on credit terms against the risk that their customers will not pay due to insolvency, bankruptcy, or protracted default. Accounts receivable are often a business's largest uninsured asset. A single large bad debt can wipe out months of profit. Trade credit insurance allows businesses to extend credit confidently, protect cash flow, and often access better financing terms from lenders who accept insured receivables as collateral.

Who needs this coverage?

Manufacturers, wholesalers, distributors, exporters, and any business that sells on open account terms to other businesses. Particularly valuable for businesses with high customer concentration, businesses expanding into new markets, and exporters selling to foreign buyers.

Key coverages

  • Customer insolvency and bankruptcy
  • Protracted default (slow payment)
  • Political risk for export sales
  • Domestic and export receivables
  • Single-buyer and whole-turnover policies
  • Credit limit monitoring and alerts
  • Collections support
  • Improved borrowing base for lenders

Frequently Asked Questions

What is trade credit insurance?
Trade credit insurance protects your accounts receivable against non-payment by your customers due to insolvency, bankruptcy, or protracted default. It allows you to sell on open account terms with confidence, knowing your cash flow is protected if a customer fails to pay.
What is protracted default?
Protracted default occurs when a customer simply fails to pay within the agreed credit terms, without formally declaring insolvency. Most trade credit policies cover protracted default after a waiting period — typically 90 to 180 days past the due date.
Can trade credit insurance help me get better financing?
Yes. Lenders often accept insured receivables as higher-quality collateral, which can increase your borrowing base and reduce financing costs. Many businesses find that the improved financing terms partially or fully offset the cost of the premium.
Does trade credit insurance cover all my customers?
Whole-turnover policies cover your entire customer portfolio, while single-buyer policies cover specific high-value customers. The insurer will assess and set credit limits for each buyer. Buyers that the insurer is unwilling to cover may indicate elevated credit risk.
Is trade credit insurance available for export sales?
Yes. Export credit insurance covers foreign buyers and can also include political risk coverage for events such as currency inconvertibility, government expropriation, or war that prevent payment. Export Development Canada (EDC) and private insurers both offer export credit products.

Ready to review your coverage?

Speak with a licensed broker at Oracle RMS — by phone, video, or in person. We serve businesses across Canada.*

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* Commercial insurance services available across Canada, excluding Quebec.