What Is Trade Credit Insurance ?
Non-payment for goods or services can come about through insolvency or where a customer indefinitely delays invoice payment (known as protracted default). As well as providing cover in the event of a bad debt, a credit insurance policy can also provide financial information on the credit worthiness of your customers. This information can be in the form of an insured credit limit that reflects the credit worthiness of a potential new buyer. In addition, a credit insurance policy provides an early warning should your customers’ credit worthiness change. There are also policies available that combine credit insurance cover with legal and collections cover, allowing you to minimise both the financial and administrative burden of collecting a bad debt.
To discuss you own requirements please contact Dean Smith, Associate Director – Trade Credit and Surety on +44 (0) 121 452 8738 or alternatively email him at email@example.com