In the bustling world of Zimbabwean commerce, where businesses constantly navigate economic shifts, a lesser-known but incredibly vital financial tool stands ready to offer a crucial safety net: Credit Insurance. While many are familiar with car or home insurance, credit insurance operates quietly in the background, a powerful guardian for business-to-business transactions.

At its core, credit insurance acts as a shield against the unexpected. It protects companies, whether they are suppliers or "bodies corporate," from the risk of non-payment by their trade debtors. In an economy where credit often flows between sectors, both locally and globally, these unpaid debts can wreak havoc on a company's cash flow and stability. This is where a specialist like Credsure Insurance Limited (Credsure), specialist in Credist Insurance, Bonds and Guarantees as well as General Insurance, comes into play. As the country's oldest and most established credit insurer, Credsure has a long-standing history of supporting Zimbabwean businesses.

From Post-War Europe to Modern Zimbabwe: The Purpose of Credit Insurance

The origins of credit insurance are rooted in necessity. Back in the early 20th century, around 1919, it emerged in Europe to facilitate trade between nations that were rebuilding after war. The concept quickly gained traction, spreading to South Africa by 1956 and arriving in Zimbabwe in 1965 seeing the establishment of Credsure Insurance Limited, then known as Credit Insurance Zimbabwe Limited. Since 2007, Credsure has further expanded its offerings to include General short-term insurance, demonstrating its adaptability to market needs.

But what exactly does credit insurance do for a policyholder? Its primary function is to safeguard one of a business's most significant assets after its capital goods: its accounts receivable. In essence, it acts as a silent financial partner, working to:

• Prevent bad sales: By setting a credit limit for each debtor, it helps businesses avoid extending credit to companies likely to default.
• Compensate for unexpected defaults: When a buyer's fortunes suddenly change and they fail to pay, the policyholder receives compensation.
• Supervise debt collection: Even before a claim is made, the insurer assists in the collection of overdue debts.