The Insurance Gap
Whilst the current economic outlook is generally very positive, running any business carries its risks.
Unforeseen events can seriously impact your business, or your customers business!
An exceptional event, such as a fire or flood, can interrupt trading for days or even weeks while repairs are undertaken and stock replaced. This can spell financial ruin for companies that are unable to continue trading at alternative premises.
Despite this, one in six (15%) UK SMEs have no financial back-up plans in place if they were unable to trade for any reason and one in twenty (4%) UK SMEs have no insurance against such events. This amounts to over 200,000 companies across the UK.
When asked why, 38% don't see the need for any contingency plan, 21% can't afford one and 10% say they plough all their profits back into the business.
Whilst you may know something about the credit rating of your customers, what do you know about their insurance arrangements and contingency plans?
If the company you are selling to on credit terms were to suffer an unforeseen event, would they still be in a position to pay your invoices? Would they (could they) survive?
Credit Insurance protects your business against non-payment and offers the peace of mind that should the unforeseen happen, your business will be protected from the so-called 'domino effect' of business failure.