Asset Protection
Monitoring Your Risks
Constant monitoring of your existing customer base, highlighting changes in their credit -worthiness from a combination of financial information published in the public domain, analyst meetings, interim management figures, payment patterns, county court judgements. Receiving this information will help you keep an eye firmly fixed on the risk each client represents.
Trading Safely
Researching information on potential new customers/prospects to assess the level of credit to extend at the commencement of a trading relationship.
Expanding Your Business
Information and opinions can be provided on companies not only in the UK but also on a worldwide basis. Often the insight provided by using a credit insurance policy can help grow your business safely, or prevent bad debts from occurring with buyers about which you have limited or no knowledge.
Financing the Deal
Having a credit insurance policy provides assurances for a bank or trade financier and will give leverage in negotiations for drawing down funds against your UK and/or export sales.
Added Protection
A trade financier can be added to your policy as a joint-insured for added protection, or simply as a loss payee, which would entitle them to any claims payments from your policy, should you desire.
Reassurance
A comprehensive list of all your credit limits can be provided to your Financier at regular intervals to provide them with the reassurance they require.
Continuity
In the event that your company became insolvent, the financier could continue to run your policy and benefit from any claims or collections due to you.
Bad Debt Prevention
Having a credit insurance policy can often help prevent bad debts occuring.
Monitoring Your Buyers
By constantly monitoring your buyers your insurer is well positioned to correlate information received from a network of sources and to flag improvement or deterioration in your customers’ performance.
Early Warning
By opting to credit insure you will benefit from the information and intelligence flowing between the insurer and its clients. Due to the reporting disciplines inherent in a credit insurance policy, a buyer’s cash-flow difficulties can become apparent to an insurer long before becoming a matter of public record.
Working with the Risk
The insurers will advise you of any such cases relating to your customers and allow you the opportunity to adjust your credit arrangements accordingly. Many potential bad debts can be avoided this way.
Trade with Confidence
Once you establish a credit limit on a buyer, the insurer will monitor your risk and provide you with updates of any changes, good or bad, to the risk profile of your customer. This will enable you to increase business with existing customers, and to trade confidently with new customers.
Market Intelligence
Many companies can be reluctant to trade in export markets about which they have no experience. To help alleviate such concerns, most credit insurers provide detailed country reports to complement their credit risk assessment of individual buyers within these markets.
Using a Credit Insurance Policy to Grow Your Business
Having a credit insurance policy can be particularly useful in giving you the green light to grow your trade with existing customers, and to commence dealing with new customers with which you had no experience at home or abroad.
Debt Collection Services
You can choose an insurer which integrates the cost of a debt collection service into the price of your policy.
Global Reach
It is particularly important in export markets that you have local representation when it comes to collecting debts. The insurers will treat your debt as if it were their own. After all, if no recoveries are made, they are likely to end up paying a claim.
Local Knowledge
Understanding the culture, speaking the language, and being based in an office within the country of risk will be of great assistance when it comes to recovering a debt, or helping in resolving a dispute
Legal Expertise
Legal services and support in your buyer's country, can also be provided within the framework of your policy.
Credit Insurance Policies
When all else fails, the credit insurance policy protects you from incurring a bad debt by insuring you for the insolvency or default of your buyer.
Take Precaution
By using a credit insurance policy within your Credit Management Procedures you are taking every precaution to avoid having a bad debt. However, despite these measures, there will be times when bad debts occur that are unforeseeable and which, in turn, can cause a ‘domino-effect’, bringing down associated companies and trading partners alike.
Don’t Become a Victim
By having a credit insurance policy, you are taking practical precautions to avoid becoming the victim of other companies’ misfortunes, and protecting your company’s assets against the risk of loss through non-payment.
