There are companies that feel like credit insurance is not necessary, but we have seen cases where companies live to regret this. Companies decide they do not need a credit insurance policy and then afterwards suffer a year ruining bad debt. They then decide that maybe they should insure one of their largest assets. Basically what we are saying is that credit insurance is quite often purchased as a result of a bad debt. Why not protect your company before the inevitable happens.
How does credit insurance protect my company?
To put it simply - a good credit insurance policy insures the risk of your clients not being able to pay you. If your client has filed for administration or simply has cash flow problems and cannot pay you in a timely manner, the credit insurer will pay out a claim up to 90% of what is owed to you. By taking out a credit insurance policy you will not lose the total value of your invoice. This could ultimately save your company from filing a loss at companies house or worse still, not surviving. Our managed credit insurance policy also covers debt recovery costs, which without our credit insurance policy can be extremely costly to you, and if we may say, we are incredibly good at collecting overdue accounts.
But isn’t it expensive?
Isn’t car insurance expensive when comparing what you are paying to the value of the car? Our managed credit insurance policy is based on your full turnover so if you look at the price of our credit insurance policy compared to other types of insurance, it is extremely inexpensive. Also, as it is based on the whole turnover this spreads the risk meaning it is generally less expensive than insuring specific customers. Your debtor book can often be the largest asset in your company so why wouldn’t you protect that like you’d insure your cars, buildings and even phones.
We don’t bite
We’d love to answer any questions you may have so if you would like some further information on how our managed credit insurance policy can benefit you please call us on 020 8835 2587 or request a call back. You could also complete a Quick Quote if you would like the price for a credit insurance policy for your company.