Trade Credit Insurance covers a business’ debtor book, which is quite often a business’ largest asset. Yet, many businesses do not protect this asset either due to a lack of knowledge regarding credit insurance or because they feel no need to safeguard one of the most liquid assets behind only cash.
10 Reasons Businesses Should Invest in Trade Credit Insurance
- Protection – fundamentally, trade credit insurance replaces money that is lost in the event of a bad debt
- Peace of Mind – running a business can be stressful as there is so much to think about. Knowing that one of the largest assets is protected can only reduce that stress.
- Efficiency – the insurer specialises in providing up-to-date information that allows the right decisions to be made quickly and increases the efficiency of businesses.
- Profitability – trade credit insurance promotes improved profitability by allowing the increase of exposure to both new and old customers, whilst staying protected.
- Funding – a trade credit insurance policy provides greater access to finance by improving a business’ relationship with the banks as they know the business is secured.
- Stay Competitive – the ability to offer credit terms to customers allows a company to remain competitive as customers can take advantage of this to boost their cash-flow.
- Cash-flow – trade credit insurance complements and works with the existing credit control procedures to improve days sales outstanding.
- Growth – a business can expand as trade credit insurance enables companies to deal with new clients and increase credit lines to existing ones.
- Information – a trade credit insurance policy provides greater access to customer information. As information is one of the greatest commodities, decisions are made using facts.
- Confidence – a comprehensive trade credit policy encourages a business to enter new markets including the export field. CMR increases confidence to trade.
Credit insurance is much more than an insurance policy. It is a sales tool that aids growth and increases profits when managed well. CMR has been trading for over 28 years, managing credit insurance policies and helping our clients grow year on year. We are proud of our experience and success with our clients. Please do not hesitate to get in touch if you would like further information.