What is Trade Credit Insurance?

In its simplest terms, Trade Credit Insurance protects your business from unpaid invoices and provides information to help you trade with the right customers.

1. Protection – quickly replace money lost through bad debt
2. Profitability – safely increase exposure to more customers
3. Growth – secure expansion, allowing you to deal confidently with new clients
4. Speed – helps make decisions more quickly
5. Competitiveness – facility to offer open credit
6. Information – access to customer intelligence for balanced risk decisions
7. Peace of mind – protect outstanding invoices
8. Confidence – enter new markets
9. Cash Flow – complements existing credit control procedures
10. Funding – secure trade finance

With company insolvencies increasing and Brexit on the horizon, many business owners are investing in trade credit insurance as part of their contingency plan to safeguard their interests against the uncertain future of Britain’s economy.

Trade Credit Insurance can help your business succeed by providing the following benefits:

Safer business growth
Confidently expand your sales to new and existing customers while reducing the risk of unpaid invoices. It also enables you to sell on open account terms, which can be a huge competitive advantage, especially if your clients are overseas

Know your customer thoroughly
The data provided through Trade Credit Insurance will inform you of everything you need to know about existing and potential customers. The risk & financial information database is a valuable support to your in-house accounts and credit management team.

Optimised risk management
With a credit insurance policy, you will have better control of bad-debt losses. You will minimize your risk when exploring new markets. Credit insurance also gives you the peace of mind that your invoices will be paid even if your customers default. Vital for protecting your cash flows.

Better borrowing and financing options
Your business can secure better borrowing terms with the security that credit insurance provides. In some cases, your bank or lender may require credit insurance in order to qualify for a loan.

Lockyers have excellent facilities to insure the credit you have extended you your clients – give us a call on 01924 278222 or check out https://www.lockyers.co.uk/business-insurance/trade-credit-insurance