Credit Insurance should be regarded as an essential component in the sales process for any business offering credit terms. Not only will vital protection be provided to help minimise the risk of bad debt but additional aspects of the credit management process will improve cash flow and ultimately increase profitability.
You can rest assured that each customer has been assessed for creditworthiness and confident that all reasonable steps have been taken to avoid a bad debt.
What is credit insurance?
Credit insurance protects your business from bad debts as a result of non-payment of invoices by your customers.
How does it work?
Credit limits will be set for each insured customer. If payment is not received due to either insolvency or protracted default you will be covered for up to 90% of the debt.
If an export loss is the result of a political event outside your customer’s control a claim of 95% is paid.
Is it necessary for the entire turnover to be insured?
Generally, yes but you can select Export or UK sales and would exclude VAT, cash or pro-forma sales, sales to associate or subsidiary companies and publicly owned companies.
Credit Insurance is an evolving product and you should ask if you have a specific type of cover in mind.
How much does credit insurance cost?
The price is dependent on the nature of your business, your previous history of bad debts, the number of customers insured, your turnover and whether sales are to the UK, exported or both.
How do I find out more?
We would recommend that you telephone us to arrange a meeting in order that our services can be explained in more detail. Alternatively, you can complete our proposal form for an indication of the terms available to you.