How much have you claimed on your Home, Car, Life, Travel or Key Person Insurance since you started paying? Of course, you buy insurance for your own peace of mind but what you buy doesn’t offer a return on investment. And you don’t expect it to.
Credit insurance is different from most other insurance policies. It will secure the existence of your company like other policies but credit insurance is distinctive. It is a tool that can improve your own cash flow and credit control procedures and ultimately increase your profits.
Credit insurance helps you make the right decisions. Initially, you receive a new order and wisely check the creditworthiness of the customer. But questions arise. Is the business genuine? Are their accounts in order? What if the business was from a country you have never traded with? Would you order a credit report from that country?
Decisions to mitigate the risk of suffering a bad debt
These questions are answered for you with a credit insurance policy. The credit insurer allows you to approach new clients and expand your business with existing clients by guaranteeing a claim against the risk of non-payment. This valuable information guides you to the businesses that will pay invoices and in turn improve your turnover. A credit insurance policy means you no longer need to make uninformed decisions on offering your customers credit terms.
Your responsibility is to monitor every customer you have extended credit to. No matter how organised your credit control team may be, the monitoring of customers on credit takes up a lot of time. A credit insurance policy utilises procedures which support your credit control team. With a CMR managed credit insurance policy, your debt recovery costs will be covered under the policy and our support enables you to spend less on internal credit management procedures. A result is increased profit for you.
Early warning signs
Credit insurers are on the front line to know about businesses struggling financially. In turn, you’ll be informed of your customers that are no longer creditworthy. With information to stop trading, you can avoid the lengthy back and forth with an insolvency practitioner. With a credit insurance policy, you would be guaranteed 90p for every £1 owed. With no credit insurance policy, it is likely that you’d get 1p for every £1 you were owed
Credit insurance is much more than an insurance policy. It is a sales tool that aids growth and increases profits when managed well. CMR has been trading for over 28 years managing credit insurance policies and helping our clients grow year on year. We are proud of our experience and success with our clients. Please do not hesitate to get in touch if you would like further information.