Funnily enough, CMR believes credit insurance is a fundamental need for businesses. Not because it keeps our business going but for many other reasons that we are now going to detail below, in what we are calling “The 10 ‘its’ of credit insurance”:

  1. It stops bad debts derailing your big plans – Quite simply credit insurance pays a claim when a customer fails to pay invoices. This could be either through cash flow issues or insolvency.
  2. It gives you the insight into your customers’ financial situation – The underwriters analyse each country, trade sector and individual companies, thus giving you the insight into the credibility of your client base and also new prospects.
  3. It ensures the longevity of your business – Due to the protection provided, it is unlikely that a bad debt will cause your company to fail. With this in mind, you can concentrate on keeping your business in profit and therefore stable.
  4. It gives you the confidence to trade in new markets and grow – As you can apply for cover on a new customer that you have never dealt with and a limit is approved, you’re protected to trade and can therefore increase your turnover.
  5. It gives you a “heads up” if a customer is struggling – As the Underwriters continuously monitor most companies, you’ll be notified if any one of your clients' falls into financial difficulties.
  6. It improves your cash flow – Credit insurance works with your company to enhance your credit control as the policy states overdue accounts must be notified to the insurer. If necessary, debt recovery will commence and with our managed policy these costs are reclaimable. All of this adds up to an improved cash flow.
  7. It protects your largest asset – You probably insure your car, your office/contents and even key staff so why wouldn’t you insure your largest asset, your debtor book. Your debtors generally make up a large element of your net worth so if the cash is not realised, you will not make the return expected.
  8. It gives you peace of mind – Being protected with credit insurance means you will have peace of mind as a business owner. Your sales team can go after business and you will not have to vet each new customer. Your team will obtain cover and that is that.
  9. It gives confidence to suppliers – Your suppliers are also keen for you to be credit insured nowadays as they do not want to lose clients either. If you’re struggling because of a client not paying you, your supplier could also suffer in a domino effect.
  10. It gives you political cover for exports – During these uncertain times, political risk cover is more important than ever. If you export, political risk cover comes as standard. Political risk causes of loss typically include; war, natural disaster and export licence cancellation.

Should you have any queries about how credit insurance could help your company’s cash flow, grow and give you peace of mind, please do not hesitate to get in touch.