The Association of British Insurers (ABI) has recently published a new guide that showcases the value of trade credit insurance to business.
Credit insurance is a Business to Business type of insurance providing cover against the risk of not being paid for goods or services that businesses sell. If their customers (also known as buyers) do not pay, the loss is covered by the insurance policy. The protection gives businesses the confidence to extend credit to new customers and also improves access to funding, from banks and financial institutions often at more competitive rates.
The guide has been published to encourage more business owners to consider trade credit insurance.
Are you able to cover the reality of cashflow if your customers do not pay or pay later than the payment terms dictate?
In the guide, the ABI cover the different types of trade credit insurance, the benefits and how to apply.
Key ways that your business growth could be supported, as mentioned in the guide, are
- That credit insurance can reduce the risk to your business of non-payment by debtors
- It can reduce the risk of selling to new customers often considered too risky.
- Help expansion into new international markets by protecting the financial risks of exporting