What is Advanced Payment Protection / Supplier Default Insurance?
Advanced payment protection covers payments made to suppliers in advance of receiving goods or services against the risk of insolvency or default of the supplier (where a refund is not given). Advanced payments are sometimes otherwise known as deposits, upfront payments, pre-payments or pro forma and policies can be set up to cover a single supplier or a selection of suppliers either in the UK or overseas.
What does Advanced Payment Protection / Supplier Default Insurance cover?
Most policies will pay out to up to 90% of the debt and policies can either cover a single or series of advanced payments during the contract period for prepayments made up to 12 months in advance.
What is the benefit to my business?
Having an advanced payment protection policy means that you can securely import from new markets, secure better financing terms and switch to better value suppliers whether you sell to other businesses or consumers.
What does an Advanced Payment Protection / Supplier Default Insurance policy cost?
Every policy is bespoke to fit a company’s specific needs and as specialist brokers, Acumen have access to whole market and will carry out a thorough review to ensure that your specific requirements are met at the best price. Please contact us for a quotation.