The process of insuring accounts receivable involves understanding a company's trade sector, risk philosophy, business strategy, financial health, funding requirements and internal credit management expertise. The ultimate goal is not only indemnify losses incurred from a trade debt default but also to help the insured avoid catastrophic losses and grow their business profitably. The key is having the right information to make informed credit decisions and therefore avoid or minimize losses.

A trade credit insurance policy does not replace a company's credit practices, but rather supplements and enhances the job of a credit professional. The best credit insurers will invest heavily in the development of proprietary credit and financial information, and also will employ risk analysts, as well as industry- and countrybased underwriters, in many geographic locations in order to have a close physical presence to its customers’ buyers. The better credit insurers will also analyse payment information about the insured buyers to identify early signs of financial trouble.

At the start of negotiations the would-be insured describes the risk structure of the business it wants to insure in a document known as the application form. This contains all the details on the insured's own business and about its buyers that are required for assessing the risk profile. The details on the insured itself serve not only to categorise the company in terms of sector, products, market standing etc. but also assess the subjective risk, aspects such as professionalism, management quality and mentality and solvency. The other side of the story is the risk profile of the buyer portfolio. To assess these details are needed on the potential buyers, such as their names, locations/domiciles, numbers, size, turnovers and outstanding receivables, terms of payment and payment periods, payment history, defaults, etc.