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Credit insurance: Is your cash flow protected?

03/10/2017 / Comments 0

Credit insurance: Is your cash flow protected?

They say that prevention is better than cure and, in the context of trading on credit terms, credit insurance is the ultimate case in point.

No matter how rigorous or stringent your credit control policies are, there will inevitably be occasions that payment doesn’t arrive on time. Whether due to a viable excuse from a customer, they’re avoiding your calls or because they’ve entered insolvency proceedings, there is an endless list of reasons.

Credit insurance – or debtor protection – protects a business’s cash flow from the threat of bad debts, whether due to insolvency or protracted default (non-payment within six months). It is a useful tool in a business’s defences as, especially today, any unexpected dent in cash flow can have significant repercussions.

With various different options available, credit insurance solutions can be tailored to your needs. Protection can be provided against your entire debtor book, key customers or just single debtors that may have an adverse credit history or have placed an order of a particularly high value. 

Similarly, companies which trade with overseas customers could consider international cover. Whilst available as a standalone product, it can often be bolted on to other funding products such as invoice finance.

Utilising a credit insurance facility could also help you to negotiate favourable terms with suppliers as policies will reduce the impact of a bad debt on them too.

The complex problem with late payment means that there is no ‘one size fits all’ solution and should be considered alongside a whole host of other credit management strategies.

The likes of credit reports, which provide an upfront indication of a business’s creditworthiness, and early settlement discounts can all be effective at encouraging and ensuring timely payment.

To find out more about how credit insurance could help your business please click here. Or contact our team on 0800 9774833 or info@hiltonbaird.co.uk to discuss your options with one of our expert consultants. 

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Funders we work with

  • Metro Bank SME Finance
  • Positive Cashflow Finance
  • Regency Factors
  • Team Factors
  • Secure Trust Bank
  • Platform Black
  • Hitachi Capital Invoice Finance
  • Barclays
  • Aldermore Invoice Finance
  • Ultimate Finance Group
  • Woodsford Tradebridge
  • Catalyst Finance
  • Working Capital Partners
  • Market Invoice
  • Asset Advantage
  • Bibby Financial Services
  • Roma Finance
  • Henry Howard Cashflow Finance
  • 1pm
  • PNC Business Credit
  • Calverton Finance
  • Nucleus Commercial Finance
  • Skipton Business Finance
  • Pulse Cashflow Finance
  • Creative Capital
  • Outsauce
  • Trade Finance Partners
  • Royal Bank of Scotland
  • Investec
  • ABN AMRO Commercial Finance
  • Davenham Trade Finance
  • IGF Invoice Finance
  • Lloyds Bank Commercial Finance
  • InvoCap
  • iwoca
  • GapCap Cashflow Finance
  • Partnership Invoice Finance
  • Shawbrook Business Credit
  • Davenham Asset Finance
  • Spotcap
  • Innovation Finance
  • Everline
  • Close Brothers Invoice Finance
  • Santander Corporate & Commercial
  • Ashley Commercial Finance
  • Leumi ABL
  • Assetz Capital

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders

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