At its core, trade credit insurance refers to insurance for business-to-business accounts receivable (AR), safeguarding the insured party (either the seller or policyholder) from potential losses stemming from a buyer’s inability to fulfill payment obligations. Accounts receivable represents the debt incurred when a seller delivers goods and awaits payment from the buyer, akin to an IOU or loan. Alternatively, this practice can be referred to as “selling on credit terms,” serving as a cost-effective means of financing for buyers to enhance their sales.
Learn more here: https://ar.casact.org/lets-talk-about-trade-credit-insurance/
