Insight and intelligence: Trade Credit Insurance provides access to information held by insurers about the financial health of companies you are planning to do business with. Insurers can share this information with their policyholders. Your customers have a vested interest in ensuring their suppliers can obtain trade credit insurance and provide details of their up to date trading activity to the insurers.
Legal assistance: If a customer refuses to pay the insurer’s legal recovery teams can step in to recover the outstanding amounts. This avoids the need to use costly “after the event” debt recovery companies. If the customer is still trading this could also avoid making a claim against your policy. Insurer’s legal recovery teams also understand how the legal systems operate in other countries too.
Export with confidence: Insurers have offices worldwide and gather knowledge and insights into overseas markets.
Reducing risk: It’s possible your customers could face insolvency through no fault of their own – Trade Credit Insurance mitigates that risk, putting you in control of your future by providing cash flow relief if a customer becomes insolvent or refuses to pay.
Cost-effectiveness: If you have a profit margin of 10% for every £1,000 of bad debt you’d need to generate sales of £10,000 to recoup that, making Trade Credit Insurance totally cost-effective.
Heading off problems: Many companies will face problems which are impossible to foresee. Firms who have Trade Credit Insurance can head off those problems before they happen.
Access to finance: Banks can look more favourably upon businesses with Trade Credit Insurance and provide additional funding to support growth plans. If you are considering using invoice finance, trade credit insurance can provide your finance company with the security they need to provide additional funding.
Boosting sales: Using Trade Credit Insurance to offer customers and prospects more favourable credit payment terms and limits. This could have a tangible impact on your sales performance.