Could Advanced Payment Protection help you?
Peace of mind for your business: Advanced Payment Protection (APP) minimises long term risks
APP covers advance payments made to a supplier. It reimburses the insured party in the event of non-delivery of pre-paid goods or services, where a refund is not given, as a result of protracted default, supplier insolvency or political risk.
What’s an ‘Advanced Payment’?
Sums paid under a contract in advance of delivery of goods or provision of services. It may also be called:
- pro forma
- deposit
- upfront payment
- pre-payment
Key Benefits
Knowing your advance payments are covered means you can:
✔ Switch to better value suppliers
✔ Import from new markets
✔ Potentially secure better financing terms
✔ Safely pay in advance on behalf of a Third Party (Third Party option)
| Key Features | Client Benefits |
| Risks covered include − Protracted default − Supplier insolvency − Political risk |
You can safely − Switch to better value suppliers − Source new products and services − Import from new markets |
| High level of protection − Up to 90% of the insured debt is paid out in the event of a claim |
Reassurance for your business and your funders − Secure funding − Better financing terms |
| Covers a single or series of advance payments during the contract period | Benefit from advance payment discounts – May cover all or part of the APP premium |
| Worldwide transactions − Domestic and export |
Source goods and services from new markets outside usual areas |
| Cover available for prepayments made up to 12 months in advance |
Minimise the long-term risks to business |
| A bespoke third-party policy | Peace of mind for agents − Covered if you pay a supplier on behalf of a Third Party (agents) |
For more information or to obtain a quotation, please do not hesitate to contact our Credit team or visit our dedicated Credit Insurance webpage.
