Introduction: Why You Need to Protect Your Receivables
In today’s unpredictable economic environment, even your most reliable customers may delay payments or default entirely. When your business offers credit terms, unpaid invoices can quickly lead to serious cash flow problems.
That’s where Accounts Receivable Insurance comes in. This form of protection ensures that you get paid — even when your customers don’t.
What Is Accounts Receivable Insurance?
Accounts Receivable Insurance (also referred to as Trade Credit Insurance or Debtors Insurance) is a policy that protects your business against the risk of non-payment by customers. It covers your outstanding invoices in cases of insolvency, protracted default, or political and commercial risks (particularly when trading internationally).
At Credit Guarantee, we’ve helped South African businesses secure their receivables and trade with confidence for over 65 years.
How Does It Work?
Here’s how accounts receivable insurance typically works:
- You sell goods or services on credit (e.g., 30–90 day terms).
- We assess and approve your customers’ creditworthiness.
- If a customer defaults or becomes insolvent, we reimburse you for the insured value of that invoice.
- You maintain healthy cash flow and avoid bad debt write-offs.
What Does It Cover?
Our policies are flexible and tailored to your business needs. Typical coverage includes:
- Insolvency of a customer
- Non-payment or delayed payment
- Political risks (for exporters)
- Pre-shipment risks (on request)
- Customer concentration risk (optional)
Is This the Same as Trade Credit Insurance?
Yes. Accounts Receivable Insurance and Trade Credit Insurance are different terms for the same product. Both refer to insurance that protects your business when customers fail to pay their invoices.
In South Africa, the term Debtors Insurance is also commonly used. No matter the name, the goal remains the same: protecting your business from financial loss.
Who Needs Accounts Receivable Insurance?
Accounts receivable insurance is ideal for:
- Businesses that sell goods or services on credit
- Companies with large or high-risk customer bases
- Exporters trading into unfamiliar or volatile markets
- SMEs looking to grow securely and manage risk
Whether you’re a manufacturer, wholesaler, service provider, or exporter — this type of cover is essential.
What Are the Benefits?
Cash Flow Protection
Avoid disruptions caused by late or missed payments.
Access to Credit Intelligence
Gain insights into your customers’ financial health before extending terms.
Improved Financing Options
Insured receivables can improve your standing with financial institutions.
Confident Business Growth
Take on new clients or markets with peace of mind.
Why Choose Credit Guarantee?
Credit Guarantee is a specialist insurer with decades of experience in trade credit and accounts receivable insurance. We offer:
- Customised policies for SMEs and corporates
- Domestic and export cover
- In-depth customer risk analysis
- Local expertise with global reach
We’ve been helping South African businesses succeed since 1956.
