Insurance transfers risk
A premium covers an agreed share of insured losses, subject to policy terms.
Comparison
Trade credit insurance vs debt recovery
Credit insurance and recovery solve different parts of the same problem. Here's how they compare — and why they often work best together.
Trade credit insurance protects you against the risk that a customer doesn't pay — for a premium, an insurer covers an agreed portion of insured losses, subject to the policy's terms, limits and excess. It is a risk-transfer product: it cushions the balance sheet when a large account goes bad, but it comes with an ongoing cost, credit limits per customer, and claims conditions you have to meet.
Debt recovery is not insurance — it's the work of actually getting an overdue account paid. Merion works on commission, so there's no premium and no upfront cost; a fee applies only to what we recover. The two are complementary: many insured businesses still use a recovery agency for accounts below their insured limits, for the excess they carry, and to demonstrate mitigation. Whether or not you carry credit insurance, recovery on a no-recovery-no-commission basis costs nothing to attempt. To start, refer the account.
Comparing options
Two tools, one problem
Recovery gets you paid
Commission-only work to actually collect the overdue account — no premium.
Mind the gaps
Excess, per-customer limits and claims conditions leave real exposure insurance won't cover.
Best together
Insured businesses still use recovery for uninsured accounts and to show mitigation.
Insured or not, recovery still helps
Refer overdue accounts and we'll pursue them on a no-recovery-no-commission basis.
Common questions
Frequently asked questions
Is trade credit insurance the same as debt recovery?
No. Insurance transfers the risk of non-payment for a premium; recovery is the work of actually collecting an overdue account. They solve different parts of the same problem.
If I have credit insurance, do I still need a recovery agency?
Often, yes — for accounts below your insured limits, the excess you carry, and to demonstrate you've mitigated the loss. Recovery on commission costs nothing upfront to try.
Which is cheaper?
They're different models. Insurance is an ongoing premium; recovery is commission-only, charged only on what's recovered, with no upfront cost.
Where do you recover accounts?
Across Queensland, Victoria, New South Wales and the ACT.
Get started
Carrying an overdue account?
Refer it for a free appraisal — insured or not.