Trade Credit

Manage your credit strategically


One of the largest line items on a business’s balance sheet is their accounts receivable. Often it is the only large asset that is not protected by insurance. Many companies believe the diversification of receivables helps protect them from impactful loss, but this is often not the case. Even small losses can have severe consequences for businesses based on timing, supply chain and other factors that are unique to every business. Brown & Brown’s Trade Credit specialists can show you ways to help reduce risk while simultaneously helping you tap into additional working capital and grow revenue.

How We Can Help

Strategically managing credit risk is an important part of your business. We can assist in three key areas:

Risk Transfer: Even small credit losses are painful. For example, a company with 10% net margins that suffers a $100,000 loss needs to add $1M of new sales the following year to make up for the lost capital. By transferring risk, a company can protect its balance sheet efficiently, both in terms of risk and tax liability.

Working Capital: Many companies finance working capital by borrowing against their receivables. This approach works well with domestic trade, but banks typically remove some receivables from the borrowing formula. Typically, export receivables, concentrated receivables and receivables from buyers with unknown credit profiles are excluded. A credit insurance policy can be used as a secondary form of repayment acceptable to the bank. This makes the excluded receivables eligible for the borrowing base and increases the business’s borrowing capacity.

Sales Growth: Businesses often extend credit to close deals with new buyers. You may make the best product in your sector, but if you demand cash-in advance or a letter of credit, your prospect may look elsewhere for better terms. Our team can help you use credit strategically to close deals with new prospects or grow trade with existing customers without risk to your balance sheet. Credit insurance is by far the most economical way to achieve sales goals and while managing risk.

team meeting in conference room


  • Multi-Buyer, Short-Term
  • Key Account Policy
  • Single-Buyer Policy
  • Medium-Term Policy
  • Structured Trade Finance
  • Credit Default Swaps
  • Political Risk Insurance

Ready to help minimize your risk and uncertainty?

Contact us for more information.