TRADE CREDIT DEFAULT SWAP

Turn Accounts Receivables Into Revenue in 24 Hours, Recover Debts in 24 Hours and Eliminate the Risk of Non-Payment!

THE PROBLEM OF NON-PAYMENT:

As a business owner, extending trade credit to buyers and purchasing on credit from your suppliers is how business gets done. However, a lot of the clients you’ve extended trade credit to may not be able to make payment for goods sold and services rendered on credit for different reasons.

Nonpayment or unpaid debts usually arises when a customer becomes insolvent and has insufficient funds to pay its debts. Also, customers may be unable to pay their debts due to natural disasters, terrorist risks, economic risks, or pandemic risks as well as political risks such as war, acts of overseas Governments, import/ export restrictions, and currency transfer restrictions, which are beyond their control.

To protect against the risk of default by buyers and financial losses from nonpayment, businesses commonly take advantage of Trade Credit Default Swap.

THE ULTIMATE SOLUTION TO THE PROBLEM OF NON-PAYMENT IS THE TRADE CREDIT DEFAULT SWAP!

WHAT IS THE TRADE CREDIT DEFAULT SWAP?

Trade Credit Default Swap protects businesses against the risk of default by buyers and financial losses from nonpayment of goods or services by their buyers. For example, if your customer fails to pay you for goods or services delivered on credit terms, then WTE safeguards your business by paying you 100% of the debt owed by your customers. No loss, no write-off, and no write-down. This ensures that your capital is protected, cash flows are maintained, loan servicing and repayments are enhanced, and earnings are secure from any events of default.

YOU CAN ELIMINATE NON-PAYMENT
RISKS FOREVER

You are 100% guaranteed to get paid for your products or services even if your client is insolvent and has insufficient funds to pay its debts.

RECOVER TRADE DEBTS
AND GET PAID IN 24 HOURS

Recover the full cash value of all your bad loans, distressed or non-performing assets, outstanding and non-collectible receivables in 24 hours. 

YOU WILL RECEIVE GUARANTEED
PAYMENT IN 24 HOURS.

 If your customer fails to pay you on time for goods or services delivered on credit terms, then WTE will pay you 100% of the debt owed in 24 hours.

Why is the Trade Credit Default Swap so Important?

Top 10 Reasons
Why You Need the Trade Credit Default Swap!

  1. Non-payment by debtors could put you out of business because debtors or Accounts Receivable  often account for the largest part of a company’s Current Assets. The risk of customer non-payment is significant for many businesses. The Trade Credit Default Swap can safeguard this crucial asset and prevent unpredictable losses.
  2. Losses attributed to non-payment of a trade debt do occur regularly. On average, one in every ten invoices becomes delinquent, with many ultimately becoming an unpaid bad debt. 
  3. When a major customer — or even multiple customers — defaults on their debts, there are devastating consequences to a company’s cash flow, earnings, profit, and capital. In a worst-case scenario, this could literally put a company out of business. 
  4. Accounts receivable (the amount owed to a company resulting from the company providing goods and/or services on credit),  is a major asset of a healthy business over which a company has the least control! 
  5. The risk of buyers defaulting on trade debt continues to loom. Default rates vary by industry and country from year-to-year, and no industry or company is immune to trade credit risk. 
Why is the Trade Credit Default Swap so Important?

Top 10 Reasons
Why You Need the Trade Credit Default Swap!

6. Non-payment or unpaid debts may be caused by insolvency, natural disasters, terrorist risks, war, acts of overseas Governments, trade wars, import/ export restrictions, currency transfer restrictions, currency inconvertibility, political risks, economic risks, or pandemic risks that are beyond the control of any business.

7. Credit Default Swap can provide valuable protection and has many other advantages.

8. Whilst Credit Default Swap is widely viewed as a tool to protect the P&L and Balance Sheet against the effects of bad debts, it is also suitable for companies seeking a credit management solution that includes credit checking and collections, companies seeking to grow sales securely or those seeking support for finance.

9. Credit Default Swap makes sure invoices will be paid and is invaluable in helping you to make credit decisions on customers in unfamiliar countries, collecting overseas debts, and providing protection in the event of non-payment. For exporters, this especially can be a major competitive advantage.

10. Credit Default Swap enables your business to trade with confidence and explore new markets or products, knowing that you’re protected against credit risks and losses that may be caused by the failure of a customer to pay.

9 Benefits of Trade Credit Default Swap

Here are nine of the main advantages of Trade Credit Default Swap:

Prevent losses before they occur

Credit default swap can assist by steering businesses away from bad risks in the first place and are often the first to become aware of companies in financial difficulties. Such information may assist in reducing exposure or at least ensuring it is not increased at the wrong moment!

Protects against the risk of a customer default on sales made on credit terms.

Should an unforeseeable credit event occur, or if your customer fails to pay you on time for goods and/or services supplied on credit terms, then WTE safeguards your business by paying you 100% of the debt owed by your customers.

Reduce bad-debt provisions and protect the company against bad debts

Protecting receivables means protection against bad debts, a reduction in bad debt provision, and freed-up capital for a healthier balance sheet. Also, credit default swap premiums are tax-deductible, but bad debt reserves are not.

Increase sales to new and existing customers by up to 1,000% in 30 days

If receivables are protected by the Credit default swap, a company can safely sell 10X more to existing customers, or go after new customers that may have been perceived as too risky. Thus, a company can increase sales by up to 1,000% in 30 days.

Increase profits without risks

Protected trade debts and improved receivables management using Credit Default Swap have shown to increase profitability. A credit default swap can typically offset its own cost many times over, even if the company never makes a claim, by increasing a company’s profits without additional risk.

Expand into new international markets without risks

Credit Default Swap can give you protection against unique export risks, help you penetrate new countries, and grow sales exponentially by enabling more competitive terms to be offered to importers than would otherwise be acceptable without any risks.

Protect profits, cash flow, capital and employment

If an unexpected loss occurs, Trade Credit Default Swap provides indemnification, thus protecting your revenues, profits, balance sheet and employees from what could otherwise be a financially catastrophic event. Thus, TCDS may be the wisest investment your company can make to ensure its profits, cash flow, capital and employment are protected.

Gain up-to-date info for better credit decisions

WTE is often significantly better informed with up-to-date information that is not in the public domain than status agencies who are considered by many to be very liberal in their credit opinions as they are of course not taking any risk. WTE’s information database and technology platform will help you reduce operational and informational costs.

Trade Credit Default Swap can assist in facilitating attractive bank financing.

Trade credit default swap can improve a company’s relationship with its lenders by providing security to banks and other types of lenders for trade or export finance.

Get better financing terms – Banks will typically lend more capital against protected receivables and may also reduce the cost of funds.

HOW IT WORKS

TCDS works by providing a guarantee that WTE will pay up when your customer doesn’t. If your customer fails to settle your invoice, declares bankruptcy after you have shipped goods to them but before they have paid you, or if it is not possible to recover the money owed to you, WTE will pay you all of your money back. Follow the steps below to get started now.
STEP 1.
OPEN A TRADE CREDIT DEFAULT SWAP ACCOUNT

Sign up for the TRADE CREDIT DEFAULT SWAP account by paying $5,000 for the Trade Credit Default Swap membership. WTE will set up a business account for you within 24 hours of confirming your membership commitment fee payment.

STEP 2
GET TRADE CREDIT DEFAULT SWAP TO PROTECT YOUR RECEIVABLES.

Get TRADE CREDIT DEFAULT SWAP to protect your receivables. TRADE CREDIT DEFAULT SWAP protects your company when customers defaults on payments. If your customer fails to settle your invoice, declares bankruptcy after you have shipped goods to them but before they have paid you, or if it is not possible to recover the money owed to you, WTE will pay you all of the money back. For example, if your customer fails to settle your $100M invoice, after you have shipped $100M worth of goods to them but before they have paid you, WTE will pay you $100M.

STEP 3.
PAY A 0.1% PREMIUM FOR THE TRADE CREDIT DEFAULT SWAP

Pay a 0.1% of sales or $1.00 per $1,000 of sales as premium. For example, to protect a $10M worth of sales, you are expected to pay a $10,000 premium for the Trade Credit Default Swap. To protect a $25M worth of sales, you are expected to pay a $25,000 premium for the Trade Credit Default Swap. The premium is a fixed, one-time fee, and payable up-front.

STEP 4.
GET PAID BY WTE IN 24 HOURS IF A CUSTOMER FAILS TO PAY

If your customer fails to pay you on time for goods or services delivered on credit terms, send a notification of non-payment to WTE. Our fully automated approach allows us to act promptly upon receipt of notification of non-payment, regardless of time zones.
First, WTE will pay you 100% of the debt owed in 24 hours. Second, WTE will recover the debt owed from the customer even if the client is insolvent.

FREQUENTLY ASKED QUESTIONS

1
Do I need Trade Credit Default Swap?

If your company sells goods or services and allows customers to pay later, thereby adding items to your accounts receivables, Trade Credit Default Swap may be a prudent purchase. In simple terms, Trade Credit Default Swap helps you stem losses resulting from non-paying customers.
If your company does business internationally, Trade Credit Default Swap may hold particular significance. As you open your business up to global trade, you also expose your company to global risks, of which there are many. Other countries may experience political risks like war, terrorism, riots, or changes in government regulations—all of which may impact a customer’s ability to pay on time or at all. Trade Credit Default Swap can provide you with a safety net that allows you to offer terms of credit to your international customers with confidence.
Trade Credit Default Swap can also help grow your business. Without some sort of financial protection, every sale you make on credit can be considered a risk, preventing you from expanding sales to further grow your company. For newer businesses, this is especially important, as the amount of capital you have in reserve may be limited. Moreover, for companies with a smaller customer base, each customer may represent a relatively large risk to the business. Trade Credit Default Swap helps reduce your risk and allows you to pursue growth, without having to worry about a non-paying customer.

2
How much does Trade Credit Default Swap cost?

What does the TCDS cost?
Typically 0.1% of sales or $1.00 per $1,000 of sales.
$25M in sales might cost: $25,000.
$10M in sales might cost: $10,000.

3
Who is the Trade Credit Default Swap Suitable For?

Trade Credit Default Swap may be suitable for any business selling goods or services on credit to other businesses. Any company that has receivables on its balance sheet has potential exposure to loss from the inability or failure of a customer to pay them. Trade Credit Default Swap helps protect your business from losses that may be caused by the failure of a customer to pay.
While Credit Default Swap can be a smart investment for many companies, it may not be applicable to companies that sell exclusively to governments or retailers since trade Credit Default Swap only covers business-to-business accounts receivable.

4
What risks does Trade Credit Default Swap cover?

The primary function of Trade Credit Default Swap is to protect sellers against buyers that do not or cannot pay. It protects against a buyer that has declared bankruptcy, insolvency, or similar legal status, as well as protecting businesses against buyers who delay payments under a bankruptcy protection arrangement.

YOU CAN USE THE TRADE CREDIT DEFAULT SWAP TO COVER FOR DIFFERENT ISSUES:

1. POLITICAL EVENT COVER: To cover non-payment due to war, currency transfer restriction…
2. ADVANCE PAYMENT TO SUPPLIERS COVER: To cover the non-reimbursement of advance payments made to your suppliers.
3. BINDING ORDERS COVER: To extend cover for orders to be delivered after a reduction or cancellation of the buyer coverage.
4. NATURAL DISASTER COVER: To cover non-payment due to a natural disaster.
5. SUPPLEMENTAL COVER: To provide additional cover on your buyers receiving insufficient coverage.
6. GENERAL LOSSES COVER: To offer protection of the balance sheet by providing cover for all types of losses.
7. DISPUTED DEBTS: To advance indemnification and assist with the management of disputed debts.
8. PRE-SHIPMENT COVER: To cover manufacturing costs when the buyer becomes insolvent before the delivery.
9. CONSIGNMENT STOCK COVER: To cover sales from a stock of goods located on the buyer’s premises.

5
When should companies purchase Trade Credit Default Swap?

Firms tend to turn to Trade Credit Default Swap when they have a credit problem or foresee exposure in the near future. We would advise firms to consider Trade Credit Default Swap when business is good, so that when a problem does strike, they don’t find themselves trying to get coverage for an uninsurable risk.”

6
How Does Trade Credit Deafult Swap Help in International Trade?

For businesses that are involved in selling goods and services, especially those that sell internationally, Trade Credit Default Swap can be a useful tool to protect against nonpayment of customers in the event of customer bankruptcy or insolvency, protracted default, or political risk. For business owners, these risks are hard to predict, and Trade Credit Default Swap provides the financial safety net that allows you to grow your business without worrying about uncontrollable events.

7
What does Trade Credit Default Swap cover?

Trade Credit Default Swap provides financial coverage for some or all of the losses suffered due to nonpayment of goods or services by a customer. Commonly, this coverage protects against customers who are unable to pay due to customer insolvency, protracted default, or political risk.
Trade Credit Default Swap policies are often tailored to the client depending on need, but standard policies do exist and are commonly used by smaller businesses with less complex requirements.

Businesses can decide how much coverage they need and whether to cover their entire customer portfolio or a subset. The following are areas covered by Trade Credit Default Swap:

YOU CAN USE THE TRADE CREDIT DEFAULT SWAP TO COVER FOR DIFFERENT ISSUES:

1. POLITICAL EVENT COVER: To cover non-payment due to war, currency transfer restriction…
2. ADVANCE PAYMENT TO SUPPLIERS COVER: To cover the non-reimbursement of advance payments made to your suppliers.
3. BINDING ORDERS COVER: To extend cover for orders to be delivered after a reduction or cancellation of the buyer coverage.
4. NATURAL DISASTER COVER: To cover non-payment due to a natural disaster.
5. SUPPLEMENTAL COVER: To provide additional cover on your buyers receiving insufficient coverage.
6. GENERAL LOSSES COVER: To offer protection of the balance sheet by providing cover for all types of losses.
7. DISPUTED DEBTS: To advance indemnification and assist with the management of disputed debts.
8. PRE-SHIPMENT COVER: To cover manufacturing costs when the buyer becomes insolvent before the delivery.
9. CONSIGNMENT STOCK COVER: To cover sales from a stock of goods located on the buyer’s premises.

8
Bankruptcy: What happens if bankruptcy occurs?

Bankruptcy: What happens if bankruptcy occurs?

The most common reason for not getting paid is that a buyer goes bankrupt before payment is due. Through a Trade Credit Default Swap policy a supplier can assure payment, either from their buyer or from their insurer. Bankruptcy, or its equivalent depending on the jurisdiction, is a recognised cause of loss in Trade Credit Default Swap policies, and triggers the start of the claims and collections process.

9
Civil Unrest: Is this covered?

Payment from a buyer can be obstructed as a result of strikes, protests, or other civil unrest. With a Trade Credit Default Swap that includes cover for political risks, not getting paid as a result of these occurrences is covered.

10
Chapter 11: Is this covered?

Buyers sometimes opt for a bankruptcy protection arrangement, also known as Chapter 11 in the USA and under different names in other jurisdictions. Such an arrangement allows the buyer to delay payments for an extended period. This occurrence is considered to be an insolvency/protracted default and is covered under a Trade Credit Default Swap policy.

11
Cover: What kinds of risks are covered?

Trade Credit Default Swap provides cover against the risk that a buyer does not pay in accordance with the agreed terms of business. It can also cover the risk that a buyer pays very late. A buyer will not pay after he has been declared bankrupt, insolvent, or a similar legal status. Similarly buyers sometimes opt for a bankruptcy protection arrangement, which allows them to delay payments for an extended period. Both instances are covered under a Trade Credit Default Swap policy. Trade Credit Default Swap policies can include a wider range of cover, depending on the circumstances. If a buyer does not pay, the Trade Credit Default Swap policy will pay out 100% of the outstanding debt or invoice amount, depending on the type of cover that was purchased. Trade Credit Default Swap policies are flexible and allow the policyholder to cover the entire portfolio or just the key accounts against corporate insolvency, bankruptcy and bad debts. The most common type of cover is called the Whole Turnover Cover, which covers all buyers of the supplier.

12
Cover: What kind of risk does a Trade Credit Default Swap policy not cover?

The trade credit risk that is covered has to have a direct link with an underlying trade transaction, i.e. the delivery of goods or services. If no such direct link exists, the outstanding amount is not covered under a Trade Credit Default Swap policy. To be covered, transactions may not be subject to disputes. Parties are usually requested to resolve any valid dispute, prior to involving WTE, and WTE will not pay a claim until the dispute has been finally resolved in favour of the supplier.

13
Trade Credit Default Swap: What is it?

Trade Credit Default Swap insures suppliers against the risk of nonpayment of goods or services by their buyers. This may be a buyer situated in the same country as the supplier (domestic risk) or a buyer situated in another country (export risk). The insurance covers nonpayment as a result of insolvency of the buyer or non-payment after an agreed number of months after due-date (protracted default). It may also insure the risk of non-payment following an event outside the control of the buyer or the seller (political risk cover), for example the risk that money owed cannot be transferred from the buyer’s country to the supplier’s country.

14
Financing: How can Trade Credit Default Swap ensure my company’s liquidity?

Outstanding receivables are usually the largest or second largest item on a trading company’s balance sheet. Bad debt losses can affect liquidity and profits. Even worse, they can cause a company’s financial ruin. Late payments or non-payments therefore pose a considerable threat to future liquidity of that company if no measures are taken. By protecting these receivables against non-payment or late payments, the company ensures its cash flow. Companies that have their business financed by a bank can assign their Trade Credit Default Swap to their bank as a security and frequently can borrow against the swap on more favourable terms and conditions.

15
Insolvency: When does insolvency occur?

Trade Credit Default Swap covers against the risk of not getting paid following insolvency. Normal payment ceases when a buyer is declared bankrupt, when a receiver is appointed, or when a bankruptcy protection period is announced. These and similar occurrences are regarded as “insolvency”.

16
Is the Trade Credit Default Swap an Insurance Policy?

The Trade Credit Default Swap is like insurance. However, it is not an insurance policy.

18
How do I get started now?

Click on the blue button below and fill the membership application form on the next page. Once we receive the membership application form, we will send you information on how to get started immediately.