Business Insurance

Credit Insurance

In this section

Credit Insurance

 

Ask yourself these questions -


Introduction

In business, there is only one thing that is really important: getting paid. The only ‘good’ client – so the phrase has it – is a paying client.

There are, however, a whole host of reasons for non-payment, some simple, some more complex. Whatever the reasons, and wherever the fault lies, however, a bad debt could place your business in serious jeopardy. The business world as we know is littered with incidences of spectacular bad debts bringing companies to their knees.

Consider a Balance Sheet. Whilst most firms insure their physical assets (buildings, stock, contents), future income by way of business interruption insurance, and purchase liability insurance to protect against third party claims, far fewer consider protecting their debtors’ balance, often a significant asset.

A simple insurance policy can make all the difference. This is where Credit Insurance comes in.

Historically many businesses considered trade credit insurance as a luxury. Today companies are recognising how trade credit insurance can offer invaluable protection against invoiced clients – particularly in the current economic environment.


More Information

For more information on Credit Insurance, please click the links below or in the menu on the left:

Summary

It is important to see credit insurance for what it really is. A business tool which can be used pro-actively as a mechanism for securing further funding for business expansion, something which can help them grow as their customers grow, and enable them to take on new business with confidence and security which they need going forward.


Contact us to discuss your requirements

 

John A Isles

Telephone: 01253 598953

or email john@rowlands-hames.co.uk

Gary Baxter Dip CII

Telephone: 01253 598957

or email gary@rowlands-hames.co.uk

 

Daniel Brookes Dip CII

Telephone: 01253 598950

or email daniel@rowlands-hames.co.uk

Addtional Information

Q1 2011 Euler Hermes Economic Outlook

Q2 2011 Euler Hermes Economic Outlook

Q3 2011 Euler Hermes Economic Outlook

Q4 2011 Euler Hermes Economic Outlook

March 2011 Euler Hermes Risk Bulletin

June 2011Euler Hermes Risk Bulletin

September 2011 Euler Hermes Risk Bulletin

Case Study 1

Case Study 2

Case Study 3

Case Study 4

"In the course of a year the average company will lose more than three of its active customers because of financial distress, insolvency, administration or receivership."

Credit Management Research Centre

 

"Over half of all UK insolvencies involve established companies with a previous record of prompt payment."

Association of Business Recovery Professionals

 

"Couldn't happen to you, or could it? You see, over 50% of all UK insolvencies involve customers who were previously prompt payers. Add to this the possibility that you may have up to 60% of your assets linked to your sales ledger and you start to see the potential problem. What's more, if you are an average company, each year you're likley to lose more than three of your active customers because of financial distress, insolvency, administration or receivership."

Credit Management Research Centre

 

"It's a scarey thought but here's another fact for you. If a customer of yours goes into liquidation, in the vast majority of cases, you won't get paid a thing... and if you are lucky enough to get something, as a trade creditor it's usually around 5p in the pound."

Association of Business Recovery Professionals

 

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