- increased profitability and growth – not only does a credit insurance policy protect you against the risks of non-payment, it can also release vital reserves, previously used to safeguard against bad debts, enabling reinvestment. What’s more, the advice and support you will receive with your policy, will encourage prompt payment by your customers and will help you to make informed decisions about the customers you work with.
- improved insights & risk management – your credit insurance policy includes customer credit checks and management, which helps you to make decisions about the appropriate credit that you can extend to a client. This isn’t just about preventing you from working with businesses that have poor credit ratings, it is also about ensuring you extend affordable credit to each of your customers, and will help you to identify new customers to pursue and potential markets you can expand into.
- more favourable finance terms – guarantees that your debts will be paid, even if your customer is insolvent, will support any applications that you make to finance facilities, including banks for expansion loans, or invoice finance and factoring companies. The extra security of a credit insurance policy should mean that you more likely to be accepted, and that the credit terms should be more competitive.
- better payment terms with your customers – your policy can grant access to a credit control team and experienced debt collectors, improving the frequency of customer payments. This means faster payments from traditionally slow payers, giving you more cash within the business at any one time.
Interview with Simon Howell | Credit Risk Specialist
Having worked in a number of large corporations, implementing and managing credit risk strategies, Simon Howell is an 'on the ground' expert for all things credit management.