A credit insurance policy can be help you grow your business with the peace of mind that the debts owed to your company will be paid. With a policy in place you do not have to worry about suffering a bad debt, as in the case of a company simply not paying, or becoming insolvent, the policy will pay out.
You may not typically offer credit to new customers, which can hinder your sales, but with a policy in place and cover provided against that customer, you can have the confidence to trade with them from day one.
The availability and level of cover will always depend on the credit worthiness of your customer but many policies will allow a minimum ‘blanket’ cover level, even if your customer has a particularly poor rating.
Your insurance provider can also offer valuable insight into the health of the companies you are currently trading with, or are hoping to trade with in the future, which means they can also help manage your risk.
How does it work?
- Cover can be provided against all eligible debtors or just a small number of your customers
- It can be selective so you can choose just to cover a single transaction if you wish
- Cover can be obtained against your overseas customers giving you extra peace of mind