The risk of debtor insolvency is an inherent part of owning a business. Sometimes your customers simply do not or cannot pay you—it is unavoidable, but not disastrous. Your business can survive such a loss by purchasing a trade credit insurance policy.
In the UK, the total number of company insolvencies are predicted to increase by 9% year on year in 2019. Meanwhile, businesses who are protected against one of its customers going bust, 76% of companies whose customers become insolvent get nothing by way of reclamation. As a result, affecting their cashflow directly.
How can trade credit insurance support your business?
- You get paid when your customers don’t pay you
- Insurers will monitor your client’s financial strength so you can focus on running your own company. Information on your customers old and new is more critical than ever in times of uncertainty.
- You’ll gain peace of mind knowing that your cash flow is established
- You will avoid loss of revenue if one or more of your clients end up going bankrupt or insolvency, leading to them being unable to pay their invoices.
Trade Credit Insurance supporting Business Growth
- You may address new markets safely due to valuable information on countries, sectors and companies
- You can diversify to new products with the knowledge of who you can trade with and not to trade with
- You can support your customers who are seeking longer payment terms.
Tailored Trade Credit Insurance Solutions
A clunky, ill-fitting trade credit policy will not benefit your business. Trade credit insurance is a small, specialised field that requires careful risk assessment. A precise assessment will create an effective insurance policy that keeps you above water when your customers go under.
This is where our team of insurance specialists can help, we take the time to fully understand your business’ needs and find a solution to meet your requirements. Get in touch with us today to get a no-obligation quote.