As the wheels of trade grind on through the current uncertainty, more Canadian businesses are taking a look at trade credit insurance (TCI) to secure their receivables. Thought not currently widely used by Canadian businesses it is an important business in Europe and other parts of the world. In a nutshell if a receivable is insured under a policy the insurer will covers up to 90% of an invoice value when a customer cannot pay due to insolvency or in instances of delayed payment.
Promit Mukherjee of Reuters spoke with members of the Receivables Insurance Association of Canada about why Canadian businesses are now looking closely at TCI.
