Credit Insurance: UK Manufacturing

UK manufacturing seems to be heading in the right direction as according to a new survey its activity hit a two and a half year high last month. The Markit/CIPS purchasing managers' index (PMI) for this sector increased to 56.1 in December from 53.6 the month before. Anything over 50 indicates growth. The survey found that the weaker pound has helped boost orders from overseas as we suggested in a previous blog.

The key findings from the survey were:

Our Managed Credit Insurance Policy

We know what you’re all thinking, it’s just another company saying they’re better than their competitors and they will promise you the world. However this is not the case. We would just like to enlighten you as to how a credit insurance policy can help reduce the risk of a bad debt destabilising your business. Great timing following a report by Direct Line for Business that suggested £5.8billion was written off in the last financial year by SMEs (small to medium enterprises)…that’s correct, that’s not even all businesses!

You don’t need credit insurance… until you need credit insurance

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.

Savers, spenders and credit insurance

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.