The benefits of trade credit insurance are obvious. Or are they?

Trade credit insurance protects your business against the risk of bad debts. But wait – it does so much more!

We work with owner-managed SMEs like you to help you gain maximum return on the cash you invest in your trade debtors. Trade credit is essentially the oil in the wheels of B2B trade. Good management of your trade credit risk is a key challenge but also an opportunity.

Trade credit insurance also:

  • supports “best practice” credit risk management processes and procedures
  • helps improve your business reputation and stability
  • frees up cash from bad debt reserves that can be put to better commercial use elsewhere in your business

Sounds great, right?

Here are some benefits in a bit more detail which we think makes taking out a ‘good’ credit insurance policy a no-brainer.

  • Increased profitability & 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, which means more money for reinvestment. As an added bonus, the advice and support that you receive with your policy will help you to make informed decisions about the customers you work with, so you can avoid any dodgy characters. The security of credit insurance may also allow you to bid for bigger contracts and allow higher levels of credit more quickly.
  • Improved insights & risk management. Credit insurers have access to information not in the public domain so that levels of credit insurance reflect real time risk. This isn’t just about preventing you from working with businesses that have poor credit ratings – it’s also about ensuring you extend appropriate credit to each of your customers, and will help you to identify new customers to pursue as well as potential markets you can expand into.
  • More favourable finance terms. Credit insurance guarantees that your insured debts will be paid, even if your customer is insolvent. It will also 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. Ideal.

What if I can’t afford trade credit insurance?

You may be thinking that these benefits are all very well and good – but your business simply can’t afford to take out a trade credit insurance policy.

Before dismissing the idea entirely, you should be thinking about:

  • How much of a negative impact a client failing to pay will have on your business.
  • Your clients’ stability, both as an individual business and as part of the industries they work in.
  • Any growth plans or expansion within your business.

Of course, you don’t have to be affected by all of these factors to warrant investing in a trade credit insurance policy. It’s important that you take the time to think about how your business will be affected if a buyer fails to pay – and whether you want to run the risk of this potential situation having a detrimental effect on the future of your business.

Our role is to get you best protection for the best value. You may be surprised what The Channel Partnership can offer.

Want to know more?

It all starts with a conversation – whether that’s a phone call, a Skype call or a meeting over a cup of tea. No prizes for guessing that a meeting is our preferred option. It’s the quickest way for you to get the information you need. We’re confident you’ll find it worthwhile – even if our advice is that we may not be the best solution for you.

Can you spare the time for a cuppa?

Of course, there’s no obligation. Please fill in this form or just give us a call on 01275 817320.

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