Trade credit insurance is a financial product that protects businesses against the risk of non-payment by their customers. When a company sells goods or services on credit, there is always a chance that the buyer may default or delay payment. This insurance helps mitigate that risk by providing coverage for unpaid invoices, allowing businesses to maintain cash flow and reduce financial losses. In addition to protecting against defaults, trade credit insurance can also help businesses secure better financing options. Lenders often view insured receivables as lower risk, which can lead to improved credit terms and access to capital. This makes trade credit insurance a valuable tool for companies looking to grow and manage their financial health.