Credit Insurance

Insurance from Rowlands & Hames.

Credit Insurance

Ask yourself these questions to see if your business should be considering credit insurance:

  • Right now, how much money is outstanding on your sales ledger?
  • How much do you know about your customers’ ability to pay?
  • How badly would your business suffer if some of your largest customers failed to make those crucial payments to you? Could your business even survive?

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.

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

Association of Business Recovery Professionals

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.

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

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:

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 ACII

Managing Director / Head of General Insurance
Chartered Insurance Broker
Direct Dial: 01253 598953
Mobile: 07974 667825
Email: john@rowlands-hames.co.uk
Add to Address Book

Gary B Baxter Dip CII

Corporate Account Manager
Direct Dial: 01253 598957
Mobile: 07904 546274
Email: gary@rowlands-hames.co.uk
Add to Address Book

Daniel Brookes ACII

Commercial Broker
Direct Dial: 01253 598950
Email: daniel@rowlands-hames.co.uk
Add to Address Book

Additional Information

How credit insurance helped a box manufacturer take on new businesses with confidence

Stockport maintenance contractor keeps on trucking thanks to Credit Insurance

Global metal merchant couldn’t function without credit insurance cover

Credit Insurance gives wholesale distributor confidence to expand

 

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

“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