What is credit insurance?
Credit insurance protects your company against the failure of your customers to pay trade credit debts owed to you. These debts can arise following a customer becoming insolvent or failing to pay within the terms that you have agreed.
How does credit insurance work?
There are different types of policies available, from insuring all your debts (present and future) to insuring one particular debt. We’ll first assess what is most important for you to protect and then approach our panel of insurers. The insurers will then analyse the credit worthiness and financial stability of your insured customers and assign them a specific credit limit, which is the amount they will indemnify if that insured customer fails to pay.
What are the benefits to credit insurance?
- Peace of mind when offering trade credit
- Assistance with setting credit limits
- Little to no bad debts