Credit insurance protects your venture from non-payment of a commercial debt. With this type of insurance coverage, you will have peace of mind that your invoices will be accounted. This also helps you manage risks associated with trade and prevent major losses that can affect operations.
In effect, credit insurance can make your business more profitable.
Protection against customer insolvency
When you obtain credit insurance, you can set a credit limit on your customer or buyer. As customers can make payments at a certain extent, you can prevent insolvency and reduce the risks of bad debts. This approach indirectly improves the financial standing of your business.
Enhanced customer relationships
With UK credit insurance, you can monitor the financial standing of your buyers. This helps you increase your credit level and the level of trade, which, in turn, strengthens your relations with customers. This means a stronger customer base, which also translates to better sales and profits.
Improved banking relationships
With this type of coverage, you can have better access to funds from the banks and lenders. As receivables remain insured, third party lenders will be more inclined to pursue a partnership with your business. What’s great about this is you can get higher levels of credit if needed.
Cost-effective solutions for your enterprise
While buyers might be defaulting, credit insurance ensures invoices will be paid. This also allows your company to sell on open accounts. Insurance coverage can also become a necessity if you want to be eligible for a loan.
Credit insurance helps you create a more efficient credit management system by reducing the costs of administration and by increasing the recovery of all unpaid debts. This indirectly allows you to focus on more value-adding activities related to your business, which, in turn, will promote sales and bring in greater profits for your trade.Read More