Credit Insurance against Bad Debts – Domestic and International
Sooner or later your business will suffer a bad debt. A customer who cannot or will not pay can cause short and long term damage.
- First, the short-term pain of coping with reduced cash-flow
- Next, the aftershocks as you are forced to pay your suppliers late damaging your relationship with them and incurring late payment interest
- Consider too your bank's reaction. Just when you need their support you begin to face tighter borrowing restrictions, spiraling into an even deeper cash flow crisis
- You could be forced to borrow elsewhere on inflated terms
- Cost cutting brings greater misery as you lay off loyal staff whose skills you really need to make a full recovery
- Finally the worst case scenario, where the bad debt is large it could spell insolvency proceedings
A credit insurance policy provides a safety net that protects you against any or all of these scenarios.
Essentially this will cover a business' entire turnover - wherever it may be trading - and can include political risks. However it can also cover your business key accounts or exceptional losses.
Credit insurance can cover a range of key business credit management problems.
If you would like more information about credit insurance and how it could help you or how it may be appropriate for your business, please complete the on-line form and one of our carefully selected partners will contact you.
CreditMan offers a host of free resources for exporting including Country Reports from the major International Credit Insurance providers.