Credit Insurance cover offers your company security from the vagaries of business.
Credit Insurance - why it makes sense
Hypothetically, what would happen if your biggest clients incurred financial difficulty and were unable to pay their invoices?
You would probably file your claim and wait. Expenditures would continue, in the absence of money coming in, you would incur cash flow problems and run the risk of paying your suppliers late, damaging long-term relationships.
Your bank may not be as supportive as you would expect when they learn that you are not credit insured. They may issue extra restrictions on your over draft.
The situation will deteriorate, overheads and staff would have to be reduced, bad debts would grow, payments will be made later and your reputation will become known as a late payer.
Ultimately, the business will begin to dissolve.
Credit Insurance cover can offer you:
Bad Debt Protection
If you are left with bad debts, you are covered, typically up to 90% of your loss. Our Credit Insurance policy offers collection of those debts while your cash flow continues uninterrupted.
Easier & Cheaper Business Borrowing
When your bank knows that your business is credit insured, they will be happier to extend overdrafts and when used as collateral your policy can help secure lower interest rates.
Greater Control and Business Focus
Smoother cash flow ensures that the business is focused on achieving its goals and objectives.
Credit Management Support
Our partner Atradius will give you the tools you need to achieve best practice in all aspects of credit management, keeping your financial systems on an even keel with a range of best practice support services ranging from up-front credit vetting to chasing outstanding debts.
Peace of Mind
Knowing that you have security will ensure peace of mind and aid productivity in the workplace.
Remember - bad debt erodes margins!
Selling on credit means that you are offering unsecured loans for goods or services supplied. Typically, debtors will represent 40% of your current assets and are probably your only unsecured asset. If a customer goes bust you will have lost the sale and the customer, and the loss comes straight off the bottom line.
The chart shows the real cost of not buying credit insurance
| Amount written off in year |
10% profit margin |
8% profit margin |
5% profit margin |
| £50K |
£500K |
£625K |
£1M |
| £40K |
£400K |
£250K |
£800K |
| £25K |
£250K |
£100K |
£500K |
| £10K |
£100K |
£50K |
£200K |
Atradius has:
- a reputation as one of the worlds leading credit insurers and protects business trade worth more than £300 billion annually
- a global market share of 25%
- has more than 90 offices in over 40 countries offering comprehensive global network
- access to information on more than 45 million companies world-wide
- the ability to deliver online credit limit decisions, information service and policy administration services
To find out more Email us