Hedge your bets with Credit Insurance
With the Cheltenham Gold Cup week starting, risk is a good thing to be talking about. Would you gamble 40% of your income on one horse without knowing the form and some sort of protection? A money back guarantee perhaps? The bookies probably wouldn't go along with this idea but effectively this is what credit insurance companies do. When you give a customer unsecure credit terms your gamble is that they will pay you when your invoices become due.
What is credit insurance? Credit insurance protects your business from non-payment of commercial debt and makes sure that your invoices will be paid. Credit insurance gives you a greater peace of mind as bad debts no longer have the potential to seriously de-stabilise your business as cover can pay out up to 90% of commercial losses and 95% of political losses in the event of protracted default or insolvency.
One of the largest assets a company has are their debtors. If those clients fail to pay, the company's balance sheet would be seriously dented lowering the net worth. Companies insure their offices, office contents and even key employees; why wouldn't you contact a credit insurance company to protect another large asset? It makes good business sense to obtain a trade credit insurance policy.
With the potential of leaving the EU there is even more uncertainty in the world so make sure you protect yourselves from bad debt with trade credit insurance. Get a Quick Quote now for all your export credit insurance needs!