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Rycroft Associates

A simple guide and overview to Advance Payment Protection:

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Advanced Payment Protection

Advanced Payment Protect (or Anticipatory Credit is the correct technical term) is simply where you have to pay for the goods (or services) upfront, the risk you are covering however, is that the company to whom you have given a money too (a deposit or paid for in full) may for whatever reason close its doors and you will not see your goods.

This is a highly specialised area of insurance and very few insurers will cover this type of risk.

Both commercial and political risk can be covered.

Examples of it's use:

A company buying goods from China and importing them into the UK, whereby the supplier has asked for payment upfront - if the company goes bust or a government block is put in place on the goods leaving the country, then a claim can be made against the policy.


A company is getting a fleet of vehicles, say coaches made and has to give a substantial deposit before work can commence - if the coachbuilder goes bust before delivering the coaches then a claim can be made on the policy for the loss of the payment advanced.

As this is a very specialised type of insurance, premiums are very much case by case (depending on the risk involved, the period of the risk and the amount of the risk).

If you would like to find out more about the cost of being covered, please contact us and we can easily arrange a quote.

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