In this economic climate, cash flow is king! All too often the impact of a customer defaulting or becoming insolvent can be catastrophic for your business no matter how good your credit management procedures are. Credit Insurance is a way to provide your business with the protection against the failure of a customer to pay their trade credit debts.
Credit insurance not only provides bad debt protection but it can increase sales by helping to secure funding from banks knowing that you have a secure debtor book. It will allow you to gain a competitive edge and strengthen your existing credit procedures. Credit insurance can also help customers who export to protect themselves against certain ‘political risks’ which may delay or prevent payment from a customer.
Here is an example of how credit insurance can help:
Two senior managers at an international stationery business saw an opportunity to set up their own company importing and wholesaling products. Having secured a customer representing 50% of their turnover, they set about securing finance but were unsuccessful due to the perceived weakness of their customer and the proportion of the debtor book it would represent. The business reviewed the situation and obtained credit insurance on the key risk which was then assigned to the bank enabling the business to start trading!
You can trade with confidence when you know your debts are protected. We can arrange tailor made solutions for all sizes of clients. Increased market competition in credit insurance has forced premiums down and this cover is more affordable than you think.
For further information or a quote, please contact ProAktive on 01302 341344.