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 specific reasons that you can agree with us.
Trade credit insurance is also sometimes known as debtor insurance, export credit insurance and accounts receivable insurance.
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 the risk of non-payment. Once your policy is in place, Atradius assesses the creditworthiness of your buyers and sets credit limits for each. You trade within those limits. If a customer fails to pay due to insolvency or protracted default, we will pay your claim in accordance with the agreed policy terms. Our credit management tools also provide ongoing risk assessment of your buyers, so you can act early if payment terms are at risk.
Yes. Trade credit insurance can support both domestic and international trade. When trading internationally, businesses face additional risks such as differences in insolvency laws, currency restrictions, and potential political events that may affect payment. Depending on the policy structure, Atradius can provide cover for a range of commercial risks and political risks, helping you trade overseas with greater confidence. Our underwriters also bring local market knowledge from over 50 countries to support your international sales.
Yes. Trade credit insurance products offered in Hong Kong are subject to oversight by the Insurance Authority (IA). The IA regulates insurers and ensures that coverage meets the required standards for local businesses. When you take out a policy with Atradius, you are working with an insurer that is fully compliant with local regulatory requirements.
Yes. Insured trade receivables are considered stronger collateral by banks and lenders. When your accounts receivable are covered by trade credit insurance, your bank has greater confidence in extending financing to your business. This can improve your access to working capital and unlock better lending terms. Many businesses use their policy as a tool to support invoice financing and other asset-based financing solutions.
Yes. Atradius offers tailored programs to suit your specific trade needs. Whether you are extending credit to new customers for the first time or managing risk across multiple sectors, our modular policy allows us to build coverage that fits your situation. You can set different credit limits for different buyers and adjust your coverage as your business grows. This approach helps you pursue sales growth without taking on unmanaged risk.
Related documents
What is credit insurance brochure
3.52MB PDF
