The base interest rate has dropped but what does that mean for the credit insurance world, maybe nothing, but more likely everything. The main reason for dropping the base rate is to promote spending in a bid to boost the economy suggesting that rather than save, consumers will spend. With the potential of a more active consumer market this would in turn boost a company’s potential client base. If you have more clients, you tend to know less about them. It’s therefore even more important to protect your company from the risk of not receiving payments from your customers with a credit insurance policy.
Business deals are generally controlled by the consumer as they more often than not tend to be the end user of what is sold. For example if everyone wants the new iPhone (the iPhone 7 for example – if it is coming out) and your company supplies the tiny piece of lens that goes over the camera, your business is going to drastically increase as everyone is dying for the new iPhone. You may not be supplying the consumer directly but they are ultimately influencing the demand of your product.
How will this affect my business?
Getting more and more business is obviously a good thing but it is only good if you are getting paid. When a company is growing it is a lot harder for you to keep tabs on your increasing customer base and getting the feel for their ability to pay. Therefore credit insurance is a great way to give you peace of mind as the credit insurers assess the financial position of each customer and supply you with a credit limit. This credit limit is what you are insured up to, meaning you will be able to trade with this customer knowing a claim will be paid out if they fail to pay you.
The CMR way
CMR works together with your credit control procedures to alleviate the stress caused by your customers not paying. These are the basics we provide with our managed credit insurance policy:
- Process credit limit applications
- Provide credit reports
- Monitor overdue accounts and proceed with our very successful method of recovery action (if necessary)
- Recover the costs of recovery action from the credit insurer
- Prepare your claims if/when a client fails to pay promptly and efficiently
This is all comprised with our vast knowledge and 1st class customer service, meaning you can concentrate on growing your business knowing our managed credit insurance policy is protecting you from bad debt.
For a call about the benefits of credit insurance click here or if you would like a price for export credit insurance, domestic credit insurance or a combined credit insurance policy please fill in our Quick Quote.