Top 10 Reasons to buy Trade Credit Insurance

• Stephen Uwins
• 22nd January 2019



Trade Credit Insurance covers your debtor book, which is quite often your business' largest asset. Yet, many businesses do not protect this asset either due to a lack of knowledge about credit insurance or because they feel no need to safeguard one of the most liquid assets behind only cash. Below are 10 reasons you should consider investing in trade credit insurance for your business:



1. Protection - fundamentally, trade credit insurance replaces money that is lost in the event of a bad debt.
2. Peace of Mind - running a business can be stressful as there is so much to think about. Knowing that one of your largest assets is protected can only reduce that stress.
3. Efficiency - the insurer specialises in providing up-to-date information that allows you to make the right decisions quickly and increases the efficiency of your business.
4. Profitability - trade credit insurance allows you to improve profitability by allowing you to increase your exposure to both new and old customers, whilst staying protected.
5. Funding - a trade credit insurance policy provides greater access to finance by improving a business' relationship with the banks as they know you are protected.
6. Stay Competitive - the ability to offer credit terms to customers allows you to remain competitive as your customers can take advantage of this to boost their cash-flow.
7. Cash-flow - trade credit insurance complements and works with your existing credit control procedures to improve days sales outstanding.
8. Growth - your business can expand as trade credit insurance enables you to deal with new clients and increase credit lines to existing ones.
9. Information - a trade credit insurance policy provides greater access to customer information. As information is one of the greatest commodities, decisions are made with the facts before you.
10. Confidence - a comprehensive trade credit policy encourages your business to enter new markets including the export field. CMR increases your confidence to trade.



For further information on trade credit insurance please do not hesitate to get in touch.





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