Claims secured. Liquidity ensured.
nextsure offers digital trade credit insurance to protect against bad debt, specifically for B2C companies and freelancers who want to secure their liquidity and minimize risks.
Protection against payment default
Optimise liquidity
Secure competitive advantages
What is trade credit insurance and how does it work?
Definition WKV
Principle of Operation Explained
Benefits at a Glance
For whom is it suitable?
The key benefits of trade credit insurance for your business
A trade credit insurance, often also referred to as accounts receivable insurance or delcredere insurance, is much more than just an emergency safety net. It is a strategic tool that offers your business significant advantages. The most obvious benefit is protection against bad debts: if a customer becomes insolvent or fails to pay for other reasons, the insurance steps in and compensates the loss. This secures your liquidity and protects your equity. But the benefits go further. With trade credit insurance, you enhance your negotiating position with banks since your receivables are secured, often resulting in better credit conditions. You can offer your customers more attractive payment terms without increasing your own risk, thus gaining competitive advantages. Additionally, a good trade credit insurance often includes credit checks of your buyers, helping you to identify risky deals at an early stage. nextsure offers you a digital, transparent, and tailored trade credit insurance that helps you grow safely and ensure your financial stability. Our solution is ideal, particularly for digital-savvy companies and freelancers who want to proactively manage their finances, to effectively fend off payment defaults and optimize their debtor management.
OUR SERVICES
Tailored protection for your claims
Risk Analysis
Professional assessment of your accounts receivable risks.
Police digital
Flexible, digital policies tailored to your needs.
Debt Protection
Protection against payment defaults by your customers.
Credit check
Continuous monitoring of customer creditworthiness.
Debt collection service
Support in dunning and debt collection.
Export insurance
Protection also for international trade transactions.
Limit management
Dynamic adjustment of credit limits.
Online portal
Easy management of your policy via the customer portal.
Professional Consultation
Competent expert advice from our specialists.
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Risk of Default: An Invisible Threat for Businesses
The risk of a payment default is often an underestimated hazard that can significantly impact businesses of any size. A single unpaid invoice can, especially for SMEs or freelancers, cause considerable liquidity shortages or, in the worst case, even threaten their existence. The causes of payment defaults are varied: customer insolvency, economic difficulties, political risks in export business, or simple unwillingness to pay. Many entrepreneurs feel secure because they maintain long-term business relationships, yet even established customers can unexpectedly encounter difficulties. A professional trade credit insurance significantly minimises this risk. It acts like an early warning system through credit checks and absorbs financial shockwaves. Without this protection, companies have to cover payment defaults out of their own pockets, which reduces profits and blocks investments. nextsure helps you make this "invisible" risk calculable and sustainably secure your revenues. Comprehensive protection against debtor risks is therefore a key component for long-term entrepreneurial success.
Trade Credit Insurance vs. Factoring: Which is the Better Choice?
Companies looking to improve their liquidity and protect themselves against bad debts often have to choose between trade credit insurance (TCI) and factoring. Both tools have their merits but differ fundamentally. Trade credit insurance is purely a risk management tool. It compensates you if a customer does not pay their invoice. The receivable remains with you, as does debtor management. Factoring, on the other hand, is a financing tool: you sell your outstanding receivables to a factoring company (factor) and receive the invoiced amount immediately, minus a fee. The factor usually also takes over debtor management and the risk of default (true factoring). TCI is ideal if you primarily seek protection against payment defaults and wish to keep debtor management in your own hands. It is often more cost-effective than factoring. Factoring is advantageous when immediate liquidity is a priority, and you wish to outsource your debtor management. nextsure offers flexible trade credit insurance, providing an excellent foundation for solid risk management.
How to Choose the Right Trade Credit Insurer
Selecting the right trade credit insurer is an important decision for the financial security of your business. Pay attention to criteria such as scope of coverage, policy flexibility, premium costs, transparency of the cost structure, the quality of credit assessments and limit management, as well as service and efficiency in claims handling. A good trade credit insurer not only provides protection but acts as a partner who understands your business. Digital processes, like those offered by nextsure, can significantly reduce administrative effort and shorten response times. Carefully compare offers and be mindful of the provider's expertise in your industry and for your company size. The insurer's reputation and financial stability are also key indicators for a long-term reliable partnership in receivables management and protection.
Costs of Trade Credit Insurance: Factors and Pricing
The cost of trade credit insurance, i.e., the premium, is composed of individual factors. These include the insured annual turnover, your company's industry, the creditworthiness of your customers (debtor structure), the average payment terms, the desired level of coverage, the agreed deductible, and the country risk in export transactions. Your previous claims history may also play a part. Typically, the premium is calculated as a per-mille rate of the insured turnover. nextsure places importance on transparent pricing and analyses your specific risk profile to present you with a tailored and competitive offer for your credit insurance. Through our digital processes, we are often able to pass on efficiency gains directly to you, enabling attractive terms for the protection of your liquidity.
Quick Completion
Fully digitalised
Flexible Tariffs
Individually customizable
Transparent Costs
No hidden fees
The digital application process at nextsure: Fast and straightforward
nextsure is revolutionising access to trade credit insurance through a fully digitalised application process. From the initial enquiry to the submission of necessary company data right through to the contract conclusion – everything takes place online, quickly and transparently. Our intelligent online questionnaire accurately captures your needs and risk structure. Thanks to automated interfaces to credit databases, risk assessment and limit allocation often occur in a very short time. You receive a clear, comprehensible offer digitally and can conclude the contract with an online signature. Even the subsequent management of your policy, reporting changes, or filing claims is simplified through our intuitive customer portal. This digital approach saves you time, reduces administrative effort, and makes protecting your receivables more accessible than ever before, ideal for digitally savvy businesses and freelancers who value efficiency and modern insurance solutions.
Securing International Business: Export Credit Insurance
Exporting goods and services presents significant opportunities as well as specific risks, such as political instability, transfer restrictions, or differing legal systems, which increase the risk of default. An export credit insurance protects your company from losses due to the insolvency of foreign customers or due to political events preventing payment. It covers economic risks (e.g., non-payment by the buyer) and political risks (e.g., war, embargoes, conversion prohibitions). nextsure analyses country risks and the creditworthiness of your international business partners to provide tailored protection. This enables you to enter new markets more securely, offer longer payment terms, and thus enhance your competitiveness in global trade. Robust protection is the key to sustainable growth in international business.
Claim in Trade Credit Insurance: What to do when the customer doesn't pay?
If a customer does not settle their invoice, swift and correct action is crucial to protect your claim under trade credit insurance. First, consistently initiate your internal dunning process and document all steps. Inform nextsure promptly about the impending payment default, often already after the first or second reminder, but no later than within the contractually agreed period. In the event of the customer's insolvency or continued non-payment despite reminders (protracted default), submit a formal claim with all relevant documents (invoices, delivery notes, reminder correspondence). nextsure supports you in the claims process, examines the case, and provides compensation after recognition, minus the deductible. Our digital portal simplifies communication and claims submission to ensure a swift settlement.
What exactly does a trade credit insurance cover?
Trade credit insurance is rapidly evolving, driven by digitalisation, big data, and changing customer requirements. Future trends include even more precise, AI-supported real-time risk assessments, more flexible and modular policies that dynamically adapt, as well as deeper integration into companies' ERP and financial systems. Sustainability aspects (ESG) could also gain significance. Insurtechs like nextsure are pioneers in developing user-friendly online platforms that simplify the entire process from quoting to claims handling. The focus is on tailor-made solutions that also cover niche markets and the needs of freelancers or smaller online retailers. The aim is to make protection against payment defaults even more accessible, transparent, and efficient, providing companies of all sizes with a solid financial foundation.
