Business Trade Credit Insurance

Every business has an element of risk in the potential failure by it's clients to pay for the goods or services provided or it's suppliers to deliver the goods or services paid for.

Some businesses are more exposed than others, many use credit reference agencies or other services to determine an appropriate credit limit for each customer or supplier.

Virtually no business has any control over and little to no knowledge of the factors within or external to it's customers or suppliers which could lead to it's failure to deliver the payment, goods or services expected, whether these are long or short term factors affecting cashflow of internal or external factors leading to that customer's insolvency or administration and resultant default.

There are hundreds of companies out there prepared to collect unpaid debts for businesses who are left out of pocket, as well as other legal remedies which can be utilised to try to mitigate the financial impact of such defaults.

All of the above have some significant shortcomings however:

1. Initial credit checks do not take account of later changes to the client;
2. Debt collection and legal action incur further costs and time;
3. None of these measures are an adequate alternative to getting paid on time;
4. In the current economic climate, protracted default of monies, goods or services owed can increasingly be the catalyst for the collapse of an otherwise healthy business.

So, that's the grim reality of business credit risks.

Here's the good news - We are able to provide insurance cover to most businesses in most sectors to cover the risk of default by customers or suppliers, with the crucial safety net of delivering speedy payment of the oustanding balance in the event of a claim providing the business with the very lifeblood needed to continue operating with minimal disruption in circumstances which could otherwise prove difficult if not catastrophic.

Premium rates are surprisingly low due to the unrivalled level and quality of business information our underwriters have access to regarding your business customers and suppliers, information which we typically share with our business clients to help them understand the risk profile of their customers and suppliers better for more informed business decisions going forward.

For a free initial review of the risk profile of your business customers and suppliers and a quote for Trade Credit Insurance to protect your cashflow and profits, complete an enquiry form or call on 0845 003 0065 and we'll be happy to discuss your business risks & needs and answer any queries you may have.