Non-Payment Protection for Food & Beverage Companies: Trade Credit

Trade credit insurance offers crucial protection for UK food and beverage companies against payment risks, helping secure cash flow and enabling confident business growth.

Challenges in the UK Food and Beverage Industry

This sector faces a complex risk landscape including supply chain disruptions, volatile raw material prices, labour shortages, strict regulations, and changing consumer demands for healthier and ethically sourced products. Profit margins are often slim, and cash flow management remains a constant challenge.

The Role of Trade Credit Insurance

In a market where companies frequently extend significant credit lines to maintain smooth cash flow, trade credit insurance safeguards revenue streams and supports business expansion.

Credit Management Practices

A survey for Marsh’s Trade Credit Report 2025 reveals that 46% of financial directors in food and beverage firms grant customers larger credit limits than recommended “all the time,” while 52% do so “sometimes.”

According to the report, “Extending credit in large, concentrated contracts can create substantial cash flow vulnerabilities.”

Risks of Extending Credit

Late payments or defaults from customer insolvency or financial distress can disrupt working capital and liquidity.
Debt collection costs add financial strain.

How Trade Credit Insurance Helps

This insurance mitigates the risk of non-payment for goods or services sold on credit, protecting companies’ cash flow and financial health.

“Trade credit insurance protects businesses against the risk of non-payment by companies for services rendered or goods sold on credit.”

Author’s summary: Trade credit insurance is essential for UK food and beverage companies to shield themselves from payment delays and defaults, ensuring stable cash flow and supporting growth despite market challenges.

Marsh — 2025-11-04