Trade Credit2021-06-23T16:31:07+09:30


Trade Credit Insurance is a financial tool to hedge against commercial and political risks beyond a company’s control. The policy indemnifies a seller against loss from non-payment of a commercial trade debtor. Non-disputed accounts receivable will be paid by either the debtor or the trade credit insurer within the terms and conditions of their policy. Close monitoring of insured buyers assists in identifying early warning signs of financial trouble.

Unlike most other types of insurance, a trade credit policy is proactively monitored throughout the term of the agreement.  Many changes can be made to the policy due to the company’s increasing / decreasing rates, terms and customer base. Accounts receivable typically represents 40% of a company’s assets. Financial executives should weigh the cost-benefit of investing in a credit Insurance policy to assist with mitigating trade credit risk.

Many factors must be taken into consideration; size of turnover, customer quality and location, terms of payments, loss history, appetite for risk retention, policy structure and industry to name but a few. Premium rates have yet to exceed 1% with most averaging between 0.1% and 0.6%


  • Security in extending credit to existing customers

  • Reduce bad-debt reserves – frees up cash flow

  • Shareholders profits protected

  • Sales expansion

  • Expansion into new markets, locally and internationally

  • Better financing terms (if required – policy can be assigned to your lender as surety)


We are able to alleviate the uncertainty in finding the right protection for you. MGA Insurance Brokers specialise in the placement of Insurance Risk Services for Individuals, Group, Corporate and Association clientele.

Only four basic pieces of information are required to get an indicative Trade Credit Insurance quote for SME clients:

  • Client Name

  • Industry

  • Annual turnover

  • Loss ratio (past three years or less as long as at least 12 months in business)

The prerequisites for SME Trade Credit Insurance quoting are (these are non-negotiable):

  • Turnover $750k – $10m

  • Must have all debtors insured (cannot be selective)

  • Minimum of 5 customers

  • Maximum credit period allowed is terms of payment plus 90 days maximum extension period

  • Must have been in business for at least 12 months

  • Export only to OECD countries

If your business falls outside of these parameters, please speak with Kirstin directly.

Contact Kirstin McMillan Leibbrandt on (08) 6383 2001 or kirstin.mcmillan.leibbrandt@mga.com

Alternatively, complete the online proposal form.

Advertising/Media, Agriculture/Farming, Airconditioning, Automitive, Book trade/office supplies, Ceramics/Glassware, Chemicals, Clothing/Textile/Shoes, Commodities, Construction – all, Dairy products, Ewlectrical Wholesaler, Electronics, Energy, Engineering, Entertainment, Finance, Financial Services, Food/Beverages, Fuel Distributors, Furniture/Flooring/Carpets, Health, Hotels/Hospitality, Information technology, Jewellery, Labour Hire, Leather/Hides/Fur, Live Animals, Machinery/Plant Hire, Meat/Offal, Metals/Steel, Mining, Miscellaneous, Paper/Printing/Board, Pharmaceuticals, Plastics/Rubber, Plumbing, Recruitment (construction related), Recruitment (non-construction related), Retail (non food), Seafood, Solar, Telecommunications, Tobacco, Transport, Whitegoods/Electrical products (consumer), Wood/Timber trading, Wool suppliers/Export

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Frequently Asked Questions

Is MGA community minded?2020-02-19T09:29:45+10:30

MGA is located in all mainland states and territories, both in metro and regional centres. In each of these locations MGA is a part of the local community and support is provided through local sponsorships and donations to a wide variety of sporting clubs, community groups, charities and events. On a national level the MGA Whittles Community Foundation was set up to facilitate fundraising by staff, along with contributions from MGA and its sister company, Whittles, from which 100% of funds are then donated to worthy charities.

For more information, please visit www.mgawhittlesfoundation.org.au

To find your local MGA office, see www.mga.com/our-offices/

Where can I find my nearest MGA Insurance Group office?2021-04-19T12:15:58+09:30

MGA has over 40 offices (and growing), located in both Metro and regional areas across mainland Australia and one in Phnom Penh, Cambodia. Office contact details can be found on our website, view our offices.

Why is it important to have the right insurance?2020-02-19T09:30:11+10:30

It’s important to understand your own risks so you can choose the right insurance product. In Australia, we have over 100 licensed insurers that offer a broad range of insurance products to choose from. Each insurer offers policies with different terms and conditions and exclusions so no two policies are the same. MGA brokers can provide advice on a wide range of general insurance products, both for domestic and business purposes and also have access to insurance policies that are not readily available to consumers.

Shouldn’t I just use an Insurance comparison website?2020-02-19T09:29:31+10:30

Some people turn to insurance comparison sites to look for the cheapest insurance, but that’s not always the best way as price is not the only thing you should consider. The policies you’ll be offered are usually fairly generic and may not meet your individual requirements. MGA brokers can arrange insurance cover on your behalf and provide advice on how to make the most of your insurance budget.

What’s the difference between an insurance agent and an insurance broker?2020-02-19T09:30:24+10:30

The main difference is that an insurance agent is a direct representative of the provider of the insurance policy being offered to you, their responsibility is to sell the products from those insurers and no others. They may be a multi agent where they provide covers from several providers, but they continue to only sell products from those insurers.

An insurance broker on the other hand is able to access many different insurers (excluding those that only sell direct to the public), matching the customer’s needs to the insurance policy and negotiating changes that may be required. Insurance brokers are engaged by the customer and are working on their behalf to source, negotiate, maintain, renew and assist in the claim process. An insurance broker is an advocate for the client, not the insurance company.

Can I pay for my insurance online?2020-02-19T09:30:44+10:30

Yes, you can pay for your insurance online through several different payment methods. Visit www.mga.com/payment-options/ to find a payment method that suits you.

How do I find my policy number?2020-02-19T09:30:53+10:30

Your policy number can be found on the tax invoice that you received when you purchased your policy. View example.

What is a Product Disclosure Statement (PDS)?2020-02-19T09:31:02+10:30

A Product Disclosure Statement (PDS) provides you with essential information to help you make a decision about whether to buy a particular product. It describes in clear terms the main features and the terms and conditions of the policy. A PDS also provides information about the cooling off period after you purchase the policy in case you change your mind and outlines what you need to do in the unlikely event you have a complaint.

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