Protect your balance sheet from potential bad debts

It is hard, and one might even say wrong, to consider economics at a time when the world has seen so much life loss and threat to our health and wellbeing. But as some green shoots of optimism start to sprout, forgive us for turning a little attention to the financial world.

Many businesses are starting to trade again after months of closure or reduced operations. Some, sadly, will not have made it through. In April, the Financial Times reported a 70% year-on-year increase in business failures and a 23% drop in new companies.

Securing the financial health of your business is critical and having confidence in your customers, and their ability to pay is a crucial part of this.  

Trade Credit insurance is one solution that can help to maintain your financial security.

What are the benefits of Trade Credit Insurance?

  1. Customer insight – it provides up to the minute credit-check information on your customers and potential customers. This gives you insight into your clients by assessing which have the ability to meet their financial obligations to you.

  2. Cashflow support – this cover provides cashflow relief should your customers become insolvent or do not pay what they owe to you on time. Your insurance cover indemnifies you for this trade debt.

  3. Assisting sales & Client relationships – it may allow you to offer customers, and potential customers, more flexible credit terms, without risk. Trade credit insurance protects you from the risks of a customer defaulting on credit terms or becoming insolvent.

  4. Flexible protection of your finances – cover can be arranged to protect your full turnover or turnover generated by individual customers. This is up to you and provides flexibility in how you wish to protect your company.

  5. Quicker customer payments – on average, customers pay 5 days faster if they are aware you have Trade Credit insurance in place.

  6. Improved banking conditions – businesses with this cover provide a better risk to banks as they know your debts are insured, leading to higher levels of funding potentially being made available to you.

If you’d be interested in learning more about Trade Credit insurance or have any queries regarding your commercial insurance, please do not hesitate to get in touch with our dedicated Commercial Team. You can email us at commercial@mcclarroninsurance.com or call on 01653 609151.

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