Trade Credit Insurance – why invest

Feb 20, 2019

10 Reasons Businesses Should Invest in Trade Credit Insurance

1. Protection – fundamentally, trade credit insurance replaces money that is lost in the event of a bad debt
2. 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.
3. 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.
4. Profitability – trade credit insurance promotes improved profitability by allowing the increase of exposure to both new and old customers, whilst staying protected.
5. 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.
6. 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.
7. Cash-flow – trade credit insurance complements and works with the existing credit control procedures to improve days sales outstanding.
8. Growth – a business can expand as trade credit insurance enables companies to deal with new clients and increase credit lines to existing ones.
9. 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.
10. Confidence – a comprehensive trade credit policy encourages a business to enter new markets including the export field. CMR increases confidence to trade.