Credit Insurance can be a valuable tool in a company’s credit control armoury and recent years have seen an explosion in availability of different types of cover.
From traditional Whole Turnover to Catastrophe or Single and Multi Buyer cover brokers can now offer a variety of policies to suit most businesses.
But it isn’t a magic bullet and trade credit insurance may not necessarily be a good fit for your business. Luckily in part five of the Managing Cashflow series from the ICM & BIS they deal with this very issue and provide a simple checklist to help identify if your company could benefit from Credit Insurance.
As always the guide can be downloaded via the link below:
Our MD and Founder Sid Home has this to say on the subject of credit insurance:
“Credit Insurance can be a boon for some companies, giving them the freedom to concentrate on growing their business whilst ensuring a company remains financially secure.
But it isn't a magic bullet and many businesses find that insurers will have such stringent credit criteria that in effect only highly credit worthy businesses are provided credit. This means many companies end up paying a significant premium for cover you are almost guaranteed never to make a claim on."
The Managing Cashflow series of guides is produced by the Institute of Credit Management in association with the Department for Business Innovation and Skills. The full series of guides can be found here.