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Birmingham: + 44 (0) 121 452 8450
London: + 44 (0) 207 983 9039
Leominster: + 44 (0) 156 831 3313
Kidderminster: + 44 (0) 1562 215215
Dudley: +44 (0) 1384 900500
Leicester +44 (0) 116 303 3372
insurance brokers Birmingham, insurance brokers London, risk management insurance brokers Birmingham, insurance brokers London, risk management insurance brokers Birmingham, insurance brokers London, risk management
Birmingham: + 44 (0) 121 452 8450
London: + 44 (0) 207 983 9039
Leominster: + 44 (0) 156 831 3313
Kidderminster: + 44 (0) 1562 215215
Dudley: +44 (0) 1384 900500
Leicester + 44 (0) 116 303 3372

Archives for Trade Credit

Late Payments

Late payments are becoming increasingly onerous for small businesses.  More and more companies are now having to go to court to chase them. A recent survey of 27,000 SME’s found that the number of County Court Judgements brought by small businesses increased by 23 per cent between the first and second quarters of 2015.
The average value of late payment amounted to £4619 – which is a lot of money for a small business.  Furthermore, the time and resource required to chase late payments for work that has already been done is exorbitant.  Indeed, it can be crippling.
The late payment of invoices is fast becoming the scourge of small businesses.  It causes cash flow issues and can impact on the very existence of businesses – not to mention stifling growth and expansion.
Trade credit insurance is a cost-effective and simple way of ensuring against the risk of not getting paid.  Our advice to small businesses is to check the credit rating of your customers and take out insurance.
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Trade Credit Insurance

Trade credit insurance is all too often overlooked by companies.  However, research by Bacs Payment Schemes shows that small businesses in the UK are spending, on average, £10.8 billion a year trying to recover overdue payments.

Nearly 80% of companies who experience late payments say that they are being kept waiting one month or longer beyond their agreed terms.  Furthermore, agreed modus operandi, such as the Prompt Payment Codes, are simply not working and are ineffective.  The financial effects of this are certainly being felt.  This means that SMEs are spending, on average, £955 a month to try and reclaim late business payments.  Over 25% of SME owners admitted to relying on bank overdrafts as they wait to receive late payments.

Further proof, if it were needed, of the benefits of taking out trade credit insurance to insure against not getting paid by your customers.  Don’t give yourself sleepless nights.  Call Dan Nixon now on 0121 452 8740 or e mail him at daniel.nixon@jobson-james.co.uk

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