Irish wholesalers granting payment terms can have significant cash tied up in a few customer accounts. A trade credit insurance enquiry should identify those concentrations and the process used to monitor overdue invoices.

Buyer approval and non-payment

Trade credit protection should be compared with the approved buyer limits, accepted payment terms and reporting obligations. An unpaid invoice does not by itself establish a covered loss. Keep the credit-control process linked to the insurance conditions.

The decision that deserves the closest review

Compare buyer approval, accepted payment terms, disputed-invoice treatment and reporting obligations. Ask how export customers are assessed and what happens when orders continue after arrears. Coordinate the enquiry with any invoice-finance arrangement.

Premiums, excesses and usable cover

Request quotations using the same business description, required limits and relevant dates. Put the annual premium, any instalment charges, excesses and important sublimits in one comparison. A cheaper premium can represent a different transfer of risk rather than the same cover at a better price.

Comparison item Question to resolve
Customer concentration and credit terms What approval is needed for major buyers?
Buyer approval and overseas exposure When must overdue accounts be reported?
Arrears management and finance arrangements How does the cover interact with invoice financing?

Request the proposed wording and schedule, not just a price or certificate. Mark any difference that affects a real activity before deciding whether the premium saving is worthwhile.

A hypothetical example

A wholesaler receives a large order from an existing customer whose earlier invoice remains unpaid. It reviews credit approval and policy obligations before treating the entire new order as protected.

Prepare an accurate insurance enquiry

Give each adviser a consistent description of the activities being insured. Include important contracts, changes since the previous enquiry and matters the insurer asks you to disclose. Do not guess answers merely to obtain a faster or cheaper quote; ask for clarification when the proposal wording is unclear.

Use the wholesale debtor book to test the offer

Prepare a list of major customers, outstanding balances and payment terms, including any export sales. Identify seasonal increases and customers whose purchases may grow. Compare proposed buyer approvals with those expected exposures instead of treating the overall insured turnover as the only decision variable.

Ask how overdue accounts, credit-limit changes and collections must be managed. If the wholesaler uses invoice funding, discuss how both arrangements depend on customer eligibility. Keep the operational reporting duties visible to the credit-control team so accepted cover is not assessed separately from daily trading decisions.

For an Irish business, confirm the accepted activities and territories against the actual Irish quotation and schedule.

A mistake to avoid

Assuming that growing sales automatically increase the approved insured limit for every buyer.

Check what happens after the policy starts

Ask who to contact when activities change or a potential claim arises. Understand the notification and consent process before arranging repairs, appointing specialists or settling a complaint. At renewal, compare the new documents with the accepted business description; continuity of a familiar brand does not prove continuity of every term.

Questions before choosing

Does credit insurance fund invoices immediately?

Insurance and invoice finance perform different roles; compare them separately and ask how they can work together.

Will a buyer approval necessarily match the wholesaler’s sales target?

Confirm the accepted limit and its conditions. A commercial target and an insurer’s approval are different figures and should remain separate in the cash forecast.

Sources and further reading

Research date: 6 October 2026. Refer to the current linked guidance and written provider or adviser terms when making a decision.