By 2025 upwards of 50% of the Trade Credit Insurance Industry will be originated, managed, and transacted online.
Digitize the terms and conditions of your policy and the assets it covers in the InBlock Vault.
Request quotes for single buyer, portfolio & syndicated transactions and secure this coverage digitally on the largest trade credit insurance platform globally.
Obtain unprecedented insight and transparency into your insured portfolio and capture data across all your policies on the LiquidX 360 insurance platform.
Our Best In Class Insurance Partners
LiquidX 360 offers the largest end-to-end digital Trade Credit Insurance platform globally.
LiquidX 360 enables asset managers, NBFIs, banks, corporates, insurance companies and brokers streamline manual administrative tasks associated with requesting, quoting, and securing capacity. Our platform also streamlines the management of policies and associated exposures through digitalization.
Digitization significantly mitigates operational risks by ensuring policy compliance, reducing uncertainty and minimizing coverage disputes. Once a policy is digitized, we can automatically cross-reference policy terms and conditions and authenticate the eligibility of endorsed buyers.
The LiquidX 360 Insurance platform provides unparalleled insight and transparency into your policy, or portfolio of policies, while providing you the tools to manage all components of your insured transactions in one centralized platform, regardless of geography, product, or broker.
Bring Your Trade Credit Insurance Program Online with LiquidX 360.
LiquidX 360 insurance platform offers Insurance Brokers a secure, customized and branded portal to manage all your client activities.
LiquidX digitizes and automates the entire lifecycle of a policy from initial submission to claim filing, including:
- Sanctions Screening.
- Quote preparation and presentation.
- Policy Binding.
- Sales, Past Due and Claim Reporting.
By automating the above manual workflows, you gain more efficient and streamlined interactions between you, your clients and carriers for greater transparency and smarter processes.
Our platform utilizes the most technologically advanced APIs to help you manage submissions, policies as well as monitor limits and exposure in real-time, for all your clients across all insurance carriers on one centralized platform.
By partnering with LiquidX you can:
- Refocus your team’s time & efforts into revenue generating activities like origination, relationship management and client service.
- Automate and streamline manual, resource intensive policy management workflows.
- Mitigate operational risk and E&O exposure by verifying receivables are eligible for coverage by digitally cross-referencing policy terms and conditions and the authenticity of endorsed buyers to minimize disputes and ensure policy compliance.
- Capture data associated with client activity to optimize business intelligence to better serve your clients and maximize your and their results in the market.
- Increase efficiency and reduce operating costs upwards of 40% over the initial three-year period.
Most importantly, our fee model does not require up-front implementation, build-out, upgrade or maintenance costs. All platform administration is managed and maintained by LiquidX too, enabling you to focus on your business while keeping our collective economic interests aligned.
Asset managers represent a growing source of capital for trade finance. In a low interest rate environment, and the short-duration, self-liquidating nature of receivables trade finance offers an attractive alternative to traditional credit investments.
The LiquidX 360 platform originates, validates, and administers insured A/R trade finance programs for Asset Manages allowing you to minimize risks and maximize returns.
Originate: LiquidX has a team of dedicated relationship managers in direct contact with corporate suppliers looking for receivables financing. We work with you to curate your portfolio, including yield requirements, currencies and jurisdictions. Our relationship approach ensures that funding relationships are established for the long-term, ensuring a consistent flow of assets.
Validate: Our platform validates every invoice that is uploaded for financing. Based on the parameters set-up in platform, we can tell you which assets are suitable for you, which are not, including insurance verification and eligibility for policies stored in the InBlock Vault.
Our digital engines ensure that invoices presented are for eligible suppliers, debtors, within maximum tenor requirements, and in approved jurisdictional currencies. We are also able to track payment status of a financed invoice enabling you to stop-purchases if an account is past due ensuring compliance under your Trade Credit Insurance policy.
Administer: Post Trade Settlement powered by Broadridge.
Every invoice financed in the LiquidX platform is tracked in real-time in our post trade settlement system. We provide customized reporting to help you to administer your facility and fulfill reporting requirements under your Trade Credit Insurance policy. We can provide real-time visibility into the health of your portfolio and use the data captured to develop analytical tools and business intelligence that can help inform future business decisions.
If your firm is seeking Trade Credit Insurance to:
- Mitigate Risk,
- Obtain third-party unbiased credit opinions on account debtors or suppliers; or
- Facilitate Financing with your leverage provider,
LiquidX has a solution for you!
Unlike other insurance products Trade Credit Insurance can be leveraged not only as a risk mitigation tool, but also an instrument to increase sales, enhance credit facilities, improve cash flows as well as compliment and support your credit management function.
At its core Trade Credit Insurance provides protection against bad debt losses and political risks. This allows you to improve cash flow by accurately budgeting premium costs versus trying to forecast a potential bad debt loss and enables you to release bad debt reserves.
Many banks utilize Trade Credit Insurance as “loss payee”. This may allow you to increase working capital by including, once excluded, export receivables and excess concentrations in your borrowing base or obtain more favorable terms due to the enhanced security the insurance policy provides your lender.
Trade Credit Insurance can also complement and support existing credit procedures by obtaining third party unbiased credit opinions on new or existing customers as well as gaining access highly specialized industry and country personnel employed by your insurer.
If you are entering new industries or emerging markets Trade Credit Insurance can help you safely expand into them by offering more favorable credit terms while eliminating the need for expensive letters of credit.
Trade Credit Insurance is an innovative and multi-faceted risk management tool which help you to navigate risk in an increasingly unpredictable world.
Risk transfer provided by credit insurers is vital to the success and stability of trade financing globally. According to the Berne Union and ICISA, the International Credit Insurance and Surety Association, private trade credit insurers and export credit agency’s support and maintain approximately $4.5 trillion in short term notional exposure at any given time. This coverage is essential to ensure banks and corporates can trade without undue pressure on liquidity or cashflows.
Underwriting at this scale requires an enormous amount of information. While financial information is relatively easy to obtain, payment information is not. Payment information is typically limited to backward looking data with lag time as high as 90 days. Insurers have virtually zero visibility into the real-time payment performance of insured receivables assets until something goes wrong and, in many instances, when it is too late.
LiquidX together with InBlock digitizes and moves this asset class online, allowing Insurers to digitally associate insurance policies with the invoices or assets they cover, offering unprecedented transparency and greater insight into insured transactions.
Once your risk portfolio is digitized insurers can better track actual exposures in real time enabling more efficient use of capacity and coverage as well as obtaining immediate notifications when capacity is free or when payment has not been received as expected.
This enhanced visibility into capacity may allow you to more efficiently utilize capacity and potentially increase written premiums by as much as 20%.
Since digitization allows you to get real-time updates on the status of individual invoices, from purchase order to payment, we can develop alerts and early warning signals based on transactional data which allows you to minimize insured disputes over eligibility, reduce legal expenses and leverage this data to more efficiently adjust claims.
What is Trade Credit Insurance?
Trade Credit Insurance protects B2B accounts receivable against non-payment risk. Non-Payment risk falls into two categories, Commercial Risks and Political Risks.
Commercial Risks include Insolvency such as Chapter 11, or equivalent in an account debtor’s country, and Protracted Default which is the account debtor’s failure to within a specified period from the due date.
Political Risks include receivable losses due to, but not limited to, Nationalization, Confiscation, Expropriation (CEN), Embargo, Revocation of Import License, Currency Inconvertibility, Transfer Risk, Non-Honouring of a Sovereign obligation and Political Violence.
Receivable Puts are typically used when there is limited or no coverage available in the Trade Credit Insurance market. Puts offer non-payment protection in the event a B2B account receivable is unpaid due to the bankruptcy of their customer. Unlike a Credit Default Swap, the purchaser of the put must be a vendor to the entity and have a bona-fide obligation due from the bankrupt entity.
Types of Contracts Available
LiquidX is the pioneer in building the world’s first digital Trade Credit Insurance platform. We believe that over the next 3-5 years, 50% of this asset class will be originated, managed, and transacted online. Since Q4 2018, we have:
Requested Over $5B of Limits…
On 1,000+ Credits…
And bound over $1B limits
LiquidX Insurance Partners