Trade Credit Insurance provides protection against a loss incurred due to the insolvency, protracted default or political event and subsequent non-payment of an invoice.
Credit insurance can be taken out against your debtors. These are typically the largest assets of any company and yet the most fluid, given that it can change from day to day. Business dynamics can change the way in which a company trades with customers, suppliers, and overseas markets. This can be challenging and very different across the board.
Credit insurance will allow you to:
- Mitigating Risk: When working with customers in riskier sectors, markets, or countries, you will be able to protect yourself from any potential losses.
- Better terms: Being able to offer better credit terms to your customers by removing the risk to your assets will allow you to increase sales, revenue, and profit.
- Better credit ratings: Protecting yourself against bad debts will mean your suppliers will feel more secure in offering credit terms.
- Easier access to finance: Insuring your customer payments will mean that if you need to obtain trade finance or invoice finance to fund your supply chain, it will give the funders assurance that their investment is secure.
- Cash flow continuation: Your policy will provide cover in the event of payment default, therefore ensuring minimal disruption to your cash flow
Funders often provide credit insurance alongside certain facilities, known as bad debt protection. This can be suitable for certain facility usage. However, this comes at a premium with a one size fits all approach.
A separate credit insurance policy is a much better fit and allows a tailored approach, providing risk protection that is flexible and cost effective, aligning to your business growth objectives.
If you are interested in finding out more about the Credit Insurance then give a member of our team a call today on 020 3867 3266 or email email@example.com.