Trade Credit Insurance

Certainty in an uncertain world

The time will come when business starts to return to normal and trading can resume. Having more control over money owed to your business can help to avoid cash flow issues and encourage growth and prosperity once the lockdown rules begin to ease.

Protection of your assets has always been important in business. One of the assets often overlooked is the cash assets which are owed to the business. This is where Trade Credit Insurance could help.

Many companies are simply unaware of the existence of Trade Credit Insurance. It’s a service which enables you to do business in the knowledge that, if your customers don’t pay, you have a back-up plan in place, giving you ongoing financial protection as well as a range of other benefits. In other words, you’ll be paid even if your customers can’t pay you.

This can be broken down as follows:

  • Cover is provided for insolvency or if a buyer refuses to pay
  • This is backed up with legal assistance (insurers are a force to be reckoned with!)
  • There are different types of cover (for example ‘all customers’ or ‘specified customers (5 or more)’
  • It fits around your existing accounting procedures
  • Annual policies ensure year-round protection for your business

Whatever the reason may be for a customer not paying you, whether it’s due to insolvency, lack of cash, or delays in them being paid themselves, Trade Credit Insurance, at its simplest, covers 90% of any outstanding credit balance in the event that a customer fails to pay you.

Trade Credit Insurance is a bespoke and personalised service tailored to each company we work with. It’s suitable for businesses with a turnover of more than £1,000,000 who offer credit to their customers.

How else can Trade Credit Insurance help?

Trade Credit insurance is about much more than financial protection. It can provide access to highly valuable reports about the ‘health’ of the companies you’re planning to do business with, sector insight and activity in the marketplace – all of which can enable businesses to implement growth plans with confidence and be in control of the company’s future direction.

Trade Credit can free up capital which can be used for growth, making it a genuine asset for your business and enabling you to determine the direction your company is going in.

I can’t afford to spend more on my insurance right now…

We appreciate that costs for everyone are under the microscope at the moment, but can you confidently answer the following questions:

  • Who is your largest customer or outstanding balance? How hard would it be to replace it if they found themselves in financial difficulty?
  • How do you protect against customer insolvency – cash, reserves, credit checks…or do you have nothing in place?
  • Who decides how much credit new and existing customers should have? Could having this backed by an insurer help?
  • Do you often have a clash between credit control and sales/operations?
  • Who do you use for legal action to recover debts? Is the cost known upfront?

If you’re unsure about the answer to any of these questions, please complete this form and our Trade Credit team will approach the market for quotations on your behalf.

Let’s try and build some certainty for your business in a world which is currently far from it.