Business is hard and in today’s competitive marketplace you need to protect yourself and your business against the risk bad debt. In an ideal world all your customers would pay up front, but occasionally you might be let down.
For your business to offer good credit terms can give you an edge over your competitors, but offering credit can leave you vulnerable to non payment. Credit insurance can provide you with a safety net if your customer fails to pay or becomes insolvent. Bad debt can reduce the amount of credit you can offer to your customers, and with an average company having around 40% of their current assets in the form of debtors, you really can’t afford not to consider credit insurance.
At Davies Finance we have many years’ experience of advising businesses in all sectors about credit insurance. From haulage companies in Manchester and HR companies in Chester, to manufacturers in Liverpool and builders merchants in Stoke on Trent, we can provide you with a tailored credit insurance policy that matches your individual requirements.
The cost of a credit insurance policy is based on the turnover of your company and how much it can be insured for. This will depend on your industry, trading history and range of customers. At Davies Finance we have experience of dealing with an extensive range of businesses so are ideally placed to provide expert advice and guidance. Your credit insurance policy will be tailored to your specific business requirements and therefore priced accordingly. You will then pay in monthly instalments which are interest free.
The credit insurer will give you a credit limit for each of the customers you trade with above an agreed level. Any customer below this level (your discretionary limit) is given a credit limit by yourself using your own experience and knowledge of them as a customer. You will then be covered by your credit insurer – usually around 80-90% of the outstanding debt - if one of your customers fails to pay
As a business, you will be responsible for telling your credit insurer if a customer becomes overdue, or if you become aware of anything which may cause your customer to be unable to pay.
Usually, claims of unpaid late payments will happen within 3 months, and for cases where your customer has become insolvent, payments will be paid within 30days.
Credit insurance is suited to all manner of companies, operating within the UK or internationally and they tend to be firms with turnovers from £250,000, although we will assess each business individually. Please contract our experienced advisors today for more information or advice about credit insurance.
