Webinar: Grow your business in an uncertain marketplace
As the UK starts to feel the effects of political events such as Brexit and the general election, it......
Trade credit insurance provides cover for businesses if a customer that owes money for products and services does not pay their debts, or pays them later than the payment terms dictate. This insurance protects businesses against commercial risks that are beyond their control and minimises the financial implications of sudden or unexpected customer insolvency.
Why have credit insurance?
An estimated total of 4,152 companies entered insolvency during Q3 2017 with many of them leaving their suppliers with significant unsatisfied debts. If your business is trading with a customer that is suddenly unable to pay their credit debts, the financial impact could be detrimental to your business. Credit Insurance is a valuable financial instrument that supports the risk management strategy mitigating any losses that should arise.
Additionally, experts predict that global growth could potentially slow this year to +2.4% and might accelerate marginally in 2017 (+2.7%). The slowdown in prices has pushed down nominal growth, turnovers, and trade both domestically and abroad. This priceless growth is set to cause a rise in insolvencies by +1% this year and in 2017.
What are the benefits?
Having knowledgeable and friendly staff on hand to assist us in making informed decisions regarding existing and potential customers has not only allowed us to minimise the risk that our company is exposed to but has also allowed us to increase our sales and acquire new business.
The main reason I would recommend Howden is the expertise of the team; their knowledge of the marketplace is excellent and the service is first class. Since working with Howden we have reduced losses to the business, increased our lending capacity hugely and enabled us to pick and manage the best clients.