Trade Credit Insurance – protect your business from the risk of bad debt
Bad debts are bad for business and can adversely affect your profits, cash flow and balance sheet. In some cases, the impact of a bad debt can put your entire business at risk.
What is Trade Credit Insurance?
If you are trading with trade customers on credit terms, there is always the risk of bad debts. This can be due to customer insolvency or protracted default, where a debt remains unpaid after an extended timeframe. Trade Credit Insurance is an ideal way to safeguard your business against the risk of non-payment of trade debts. It is available from Credit Insurance companies – you can expect to get up to 90% bad debt protection against commercial risk. Some Invoice Finance providers offer Bad debt protection (up to 100%) as an optional extra. This is known as non-recourse funding.
Features and benefits of Trade Credit Insurance
Protect your cashflow
You mitigate the risk associated with offering credit to trade customers.
Peace of mind
You can rest assured your business is protected against the risk of bad debts.
Access to finance
Funders may provide more finance if Bad Debt Protection is in place.
Vital credit information
You get information on customers alerting you to potential problems.
Competitive Advantage
You may be able to offer better credit terms to your debtors.
Confidence to grow
You can take on new customers and maximise business opportunities.
Will Trade Credit Insurance work for my business?
Trade Credit Insurance may work for your business if it meets these criteria:
Business registered in Ireland
Turnover €500K+
Selling to trade debtors on credit terms
Looking to protect your business from risk of bad debts
Talk to the Experts
If you are considering Credit Insurance , either as a standalone product, or as part of a funding package, you’ll want to be sure you choose the right product to meet your exact needs..
It’s important that you understand the various options available, so you can decide which Credit Insurance solution will be best for your business.
With our expertise, we can guide and advise you on all of your options. We can tailor a Credit Insurance solution to suit your needs, giving you peace of mind by ensuring your business is properly protected against the risk of bad debt.
For more information or if you would like a confidential chat, please call us on 01 438 6462 or email [email protected] or request a callback.
