Trade Credit Insurance
An insurance policy that protects a seller against non-payment by commercial customers, often used to support larger credit lines and unlock more aggressive sales terms.
What it does for the capital stack
Trade credit insurance turns concentrated or international receivables into bankable collateral. Lenders typically advance higher rates against insured receivables and accept concentrations they would otherwise reject.
Beyond the credit benefit, it provides a discipline on customer underwriting that many growing distributors lack internally.
Related Entries
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