According to a new survey conducted by Nimbla, 89% of SMEs in the UK and Germany have suffered losses from bad debts. The survey titled 'Bad Debt Report' also revealed that 40% of those businesses who have suffered due to bad debt were unable to recover any of the money.
Despite the large number of survey participants who had experienced bad debts and despite the value of trade credit insurance being understood, only 24% of businesses had the relevant trade credit insurance in place.
Out of the respondents, 40% said that the costs were prohibitive and a further 12% said that they were unable to find a product suited to their business. The most significant reason for not using trade credit insurance was due to the lack of suitable information available to them.
The report concluded that traditional trade credit insurance remains out of reach for many SMEs.
That’s an odd set of results for us at The Channel Partnership to get to grips with. Our experience is that 50% of those companies who use our services to research the market choose to put a policy in place with The Channel Partnership (more than twice the 24% in the report).
Still, it’s good to know that, according to research, The Channel Partnership is twice as likely to find the right solution compared to the market in general.
For more information or to enquire about Credit Insurance for your business, please contact one of our specialist advisors on 01275 817320.