As the growing number of online B2B transactions indicates, sometimes you just want to break free from the nine-to-five world and conduct business where you want, when you want, whenever it’s convenient. With the new Trade Protect from Export Development Canada (EDC), you can now select and purchase credit insurance online, in just minutes.
Trade Protect safeguards exporters against the risk they do not get paid by their US or overseas customers. It is designed specifically for small businesses, covering amounts they are owed by foreign buyers up to $350K.
“The product works especially well for companies who only require coverage on one or a few buyers,” says Shannon Fisher, Business Development Lead at EDC. “They can pre-arrange coverage on potential customers and sell with confidence even if the buyer is new and unknown to them.”
Fisher adds that Trade Protect accounts receivable credit insurance is unique in Canada, serving the needs of growing Canadian exporters by offering a simple, fully online experience.
“Our goal for this product was to make life easier for exporters,” she says. “They are often so busy building their business they don’t have the time to go back and forth with a complex process. Trade Protect offers a simple and straightforward online application that can provide a response in as little as 10 or 15 minutes, at any time of the day or night.”
The online application process is completed in just three steps. Once Trade Protect is in place for a contract, it covers up to 90 per cent of the Canadian company’s losses if the US or overseas customer can’t or won’t pay, due to such events as bankruptcy, default or a variety of other risks.
Free up cash flow
In addition to the peace of mind that insured payment brings, having credit insurance offers other benefits. For example, knowing that payment is insured against default can encourage financial institutions to increase a company’s line of credit, freeing up a company’s cash flow to grow the business, invest in more opportunities and pursue new markets and customers. The protection can also allow Canadian exporters to offer more favourable and competitive payment terms to customers.
Fisher says that smaller companies may also find Trade Protect to be a more cost- and time-effective solution for them. “Exporters are able to select which of their buyers they would like to apply for coverage on and the small premiums involved are payable online via credit card,” she says. “It also saves time, because conducting the transaction online means you’re not moving paper or pdf files back and forth.”
Click here to find out more about Trade Protect and whether it’s the right solution for your company.