Seven Reasons To Credit Insure

Nice and simple this week - its seven reasons why companies choose to credit insure.

1) Peace of Mind - Being safe in the knowledge that you will get paid even if your customer has gone bust, or simply doesn't have the means to pay you right now. For many companies, their largest asset is their sales ledger - why don't they protect it the way the protect everything else?

2) Improved Cash Flow - Credit insured suppliers are paid faster than non credit insured suppliers. According to a study, it is actually 10-15 days quicker than a non insured supplier. Such a simple thing can make a huge difference to companies.

3) Secure Business Growth - By using the information credit insurance companies can provide, you can target the right business at the right time, allowing secure growth. By identifying weaker companies, you can avoid the risk and expand with confidence. Turn over is vanity, so seeking profitbale business is the key.

4) Risk Avoidance and Reduction of Bad debt – Detailed knowledge of trade sectors and industries, combined with high levels of information on companies enables the correct credit limits to be set on customers. Monitoring these limits enables the risk to be reduced, and dangerous exposures to be monitored and reduced.

5) Tighter Credit Management - Credit insurance encourages tighter credit management, improved cash flow, and more discipline. An invoice is a potential bad debt until it has been paid, so get it paid more quickly.

6) Improved Access To Trade Finance - Many banks and lenders are often more able to offer improved terms and rates when they know their client has taken prudent steps to cover their risks. Many insist on this at the moment.

7) Improved Trading Terms with Suppliers - just as banks like to deal with prudent companies, so do suppliers. Would you prefer to deal with a prudent company? Chances are, so would they!

So there you have it. In short, credit insurance is all about being better informed, being paid more quickly and protecting against bad debt.

As always, please feel free to contact me via twitter, LinkedIn, or through the Exchange Insurance Services web site for more information, and to arrange a consultation.