Atradius trade credit insurance protects your businesses in Hong Kong from the risk of non-payment. Whether you trade locally or internationally, our credit insurance cover gives you the confidence to extend credit to new and existing customers, protect your trade receivables, and grow your sales without taking on greater risk.
Trade credit insurance protects your business from bad debts. It insures your accounts receivable and protects your business from unpaid invoices caused by customer bankruptcy, political risks, or other reasons.
Trade credit insurance is one of the most practical solutions businesses use to protect their clients and deals from financial loss. It also supports more confident decision-making when extending credit to customers, helping businesses trade with greater security.
Step 1: We check the creditworthiness of your prospect or customer and let you know whether we insure your sales to them and if so, how much?
Step 2: You start trading and inform us regularly about your turnover with the insured customers. The frequency of the turnover declaration is defined in the contract.
Step 3: Not paid? In line with the contract we will normally first collect the debt via our collection service. If this not feasible, we will pay your claims based on the agreed policy conditions.
Pricing is based on a small percentage of your annual sales depending on a number of factors, such as:
Turnover
The premium is computed by multiplying the turnover by a premium rate.
Sector
Some sectors are more volatile, with risks reflected in premiums and closely monitored for changes.
Credit
Time allowed for your customers to make payment is factored into the premium.
Countries
Trading risks vary by country , and your premium reflects these differences.
- Grow your customer base as potential buyers may be attracted to your credit terms
- Enhance trade providing you with the confidence to develop and expand your market
- Support cashflow enabling you to build strong relationships with your suppliers and employees
- Safeguard customer relationships through improved communication and enhanced credit terms
- Improve your access to finance and your relationship with your bank
- Meet the risk management requirements of your stakeholders or board and provide peace of mind
Regarding the premium levy Hong Kong Insurance Authority (IA) to collect from policyholders in accordance with the law, read here.
Protect your account receivables
By assuring your cashflow with Credit Insurance, you may enjoy a range of benefits including:
- increased access to finance, as we can provide your bank with the reassurances they need when extending finance to you
- gaining a competitive advantage in your market through identifying opportunities as well as risks
- a reduction in your bad debt provision and, in turn a healthier balance sheet
- the confidence to seek out new markets and customers and benefit from the growth this may bring
One Credit Insurance policy, personalised options - by an industry-leading credit insurance company
To keep things simple, we operate just one policy – Modula. Within this are a range of modules to suit your needs. Acting as ‘building blocks’ of cover, this allows us to create a detailed and bespoke policy for you, to reflect your individual trade exposures.
This can be particularly useful when operating several policies to cover your different customers or markets.
Modula allows for varying levels of risk and need between customers to be clearly identified and differentiated. Providing a single policy promotes standardisation and clarity, while the individual modules allow for a custom fit and a policy suited to each individual need.
Further benefits of our Modula system include:
- Consistency across markets and languages – our multilingual underwriters and legal team ensure your policy is clear and promotes the same meaning in all languages;
- Transparency – your policy will only contain conditions that are relevant to you and will not be confused with jargon or conditions that need not apply;
- Easy online administration – you can manage your policy directly through our new online system Atradius Atrium.
Quote
"Atradius helped us to grow our business step by step. We have provided a better service, been able to increase activity with old customers, and start business with new ones."
Credit Manager, Large Agriculture Company
Frequently Asked Questions
Trade credit insurance protects your accounts receivable against non-payment. Atradius assesses your buyers' creditworthiness and sets credit limits. If a customer can't pay due to insolvency, we pay your claim under the agreed terms.
Yes. Trade credit insurance supports both domestic and international trade. Atradius can cover a range of commercial and political risks, helping you trade overseas with confidence, backed by local knowledge from over 50 countries.
Yes. Trade credit insurance in Hong Kong is regulated by the Insurance Authority (IA), which oversees insurers and ensures coverage meets local standards. With Atradius, you're working with an insurer that's fully compliant with local requirements.
Yes. Insured receivables are stronger collateral, giving banks greater confidence to finance your business. This can improve your access to working capital and unlock better lending terms, and many businesses use their policy to support invoice financing.
Yes. Atradius offers tailored programs to suit your trade needs. Our modular policy lets us build coverage that fits your situation. You can set different credit limits for different buyers and adjust as you grow, so you can pursue sales without unmanaged risk.
Related documents
What is credit insurance brochure
3.52MB PDF
