We have since expanded to offer all Short-term Commercial Insurances and a variety of supporting products. Benefits of Credit Insurance
Once a quote has been accepted, the insurer goes to work on the following:-
1.Credit assessing each of your buyers to establish their financial standing in relation to the credit limit you have requested.
2.Checking for judgements and adverse information on t
he buyer.
3.Doing reference checks.
4.Obtaining the latest information on the buyers from the information bureaus.
5.Checking payment trends against the insurers own data base.
6.Taking the pressure off your debtors staff.
7.If necessary, contacting the buyer and assessing their financial statements – with your prior approval.
8.You can grow your business safely.
9.In addition to your normal controls, a third party is now monitoring your debtors.
10.Cash flow and balance sheet are protected. Bad debt provision can be better calculated and reduced.
11.Credit Insurance provides a unique and independent view of the credit risk posed by a potential or existing customer.
12.Access to professional debt collection services. The down side
1.Not all insurers work in the same way.
2.Credit limits may not always meet your needs.
3.The certainty of being paid comes at a price. will assist in guiding you to the right insurer for your needs.
2.It pays to establish a good working relationship with the Credit Insurer and your specialist broker ( R.F.C.)
3.Insurance premiums can be offset against tax, plus you have a reduced bad debt provision and improved cash flow.
