The Role of Trade Credit Insurance in Protecting Food and Beverage Company Profitability

Despite profitability among many food and beverage companies and a generally positive outlook for the sector, financial risks remain, including the possibility of payment default among retailers and other customers. Trade credit insurance can help protect companies from a customer’s default as a result of insolvency, slow pay, and other credit and political risks.

In this edition of our Food for Thought series, we:

• Discuss the benefits of trade credit insurance.
• Outline the various insurance options such as insuring all receivables, a select list of accounts, or a single debtor.
• Provide tips to help you weigh various insurance options.

In addition, we cover geopolitical and other external factors such as the European debt crisis, explaining how trade credit policies can help food and beverage companies mitigate the risk of customer default resulting from events beyond your control.