Are your clients asking if you have credit insurance?
Your suppliers
There have been cases where suppliers are asking their customers if they have credit insurance, and there is a good reason for this. The reason is not that they are concerned you won't pay you. Their concern is that you will suffer a bad debt from another of your customers and the bad debt will cause you to get into difficulties. You are supplying them with goods and/or services and they don't want to lose you as a supplier.
Your customers
If you have experienced a client of yours asking if you are credit insured then it shows that they understand the importance of this form of protection. It also shows that they are happy with or need your products/services, as they do not want to see you disappear off the face of the earth. Think of it as a bit of flattery! It may be a new client asking the question, which would imply they want to build a long-lasting business relationship with you and your company.
The benefits for you
Whilst your customers can benefit from you not becoming insolvent, you too can benefit from a credit insurance policy. The sheer fact your customers' invoices are insured means you do not have to worry about suffering a bad debt with them. A credit insurance policy also gives you more structure to your credit control meaning your cash flow improves.
Also, if you have any really difficult customers, you can pass the overdue account over to a debt recovery team to proceed with collection. A little secret for you, if you insure with us your debt recovery costs are reclaimable under the policy.
Do you not offer credit terms?
Some companies only provide goods or services on a pro forma basis. This can restrict your potential client base because if you offer credit terms to a new customer you are more likely to win the business. To reduce the risk of not being paid, credit insurance is the way to go! If you cannot afford to offer credit terms, you could get a financier involved to help with your cash flow.
We deal with many financiers as credit insurance is important to financiers as they need to reduce their risk too. When you have a well-run credit insurance policy in place, it generally makes the financing much better value as their risk is reduced.
If you require further information about credit insurance or financing please do not hesitate to get in touch.