Credit Insurance

Very simply what is Trade Credit Insurance?

Trade Credit Insurance which is more commonly known as Credit Insurance is very simply a facility which compliments the existing credit management processes of a business and indemnifies a business if and when their customers do not pay them. This type of credit insurance must not be confused with consumer credit insurance which is a facility which will pay short term debtors (whether that be a debt in the form of a personal loan or mortgage) should the policy holder lose his source of income.

What does Credit Insurance Cover?

Credit Insurance covers any business offering goods or services on credit terms to another business and providing they have been offered a credit limit on the company in question they will be indemnified up the agreed level if their customer does not pay them whether that is due to payment default known a “protracted default” or whether this is a result of the receivership of their clients business.

How does credit insurance work?

Once a customer takes out a credit insurance policy any new client will be credit vetted against the insurers information sources and based on this information in addition to their industry knowledge and other information they may have available to them they will decide what cover they can offer. If cover is offered the insured has a responsibility to inform their insurer if a debt remains outstanding past a certain date after the invoice due date or if they receive a notice of receivership or any other information which may be deemed adverse. As long as the customer adheres to this they will be reimbursed at the agreed level if any other measures to recover the debt have been unsuccessful.

The types of Credit Insurance cover available.

A business can choose to credit insure their domestic UK business, export business or a combination. In addition to this some insurers offer single risk cover or selective cover or may offer a facility where by customers spending above or below a certain amount may be included or exlcuded under the policy.

How much does Credit Insurance Cost?

The cost of a credit insurance policy will depend on the level of turnover which is insurable under the policy, the trading history of the business seeking to take out a policy (ie previous years turnover and bad debts), the trade sector amongst a host of many other factors.

Debtprotect arranges Credit Insurance cover to protect clients against the unpleasant and distressing effects that result due to suffering bad debts. Bad debts can seriously affect your cash flow and profitability which ultimately could lead to the insolvency of your business.

There are also many additional benefits of credit insuring your business which may not seem apparent. For example the credit insurers we have access to provide information on companies that is unique, and this information is continuously being updated. Therefore the insurers have access to much more information on which they can assess the credit worthiness of any company. The protection which Credit Insurance offers helps to ensure that a business remains profitable and is in a position to grow with confidence.

What are the benefits?

By having a credit insurance policy in place the insurer may be able to offer cover in excess of what you may be prepared to offer to your client uninsured. Therefore this demonstrates that by using insurance it can be an effective business strategy as it allows you to increase you trade on credit without increasing the risk. The specialist credit insurers we work with provide a complete service by offering a debt collection and legal service for all of their insured clients. All of these features will complement your existing credit management procedures and place you in a stronger and more confident trading position.

What will Debtprotect do for my business?

Using our services we can arrange many types of Credit Insurance policies depending on your specific business requirements. The policy will be tailored to meet the requirements of your industry and your business needs. Whether you want to credit insure your entire customer base or just require it to cover export debts, DebtProtect is ideally placed to negotiate a policy that is right for you.

In summary, Credit Insurance not only protects you against bad debts and gives you access to unrivalled company information as well as being an effective tool for business growth, but it also includes a debt recovery facility and legal service for your insured clients.

Finally, if you use our services to obtain a quote, DebtProtect does not commit you to taking out a policy with us. So please contact us now if you would like to learn more about how Credit Insurance can benefit your business!

Credit Insurance is an important thing to have for all businesses because it protects you when your business does not get paid. You have provided a product or service and should be paid for it, right? More businesses are finding that getting paid is not guaranteed, that is why it is important to have credit insurance to protect you when, for whatever reason, you do not get paid.

Credit Insurance

If you are a business that receives regular monthly or annual payments, or if you provide products by way of credit there is a good chance you are at risk from somebody not being able to pay you, refusing to pay or going out of business. The one thing that is out of your control is what other people do, but by choosing to have credit insurance, you will at least have control over whether you can recover the money that is owed to you.

There are many reasons that you may not get paid for the services or products you provide, but the one constant is that when you do not get paid, your business loses out. Why should you lose out when you have delivered on your promises?

What can you do about debt?

Although we are reminded that in business it is never a good thing to put all our “eggs in one basket”, it is sometimes unavoidable. After all, if you have a large client that is going to be responsible for a great deal of your income each month, it would be foolish to turn it away just because you are worried about what will happen to your business if they do not pay, after all, we endevour to get more smaller accounts to off set that risk, but again there are no guarantees about doing this before anything goes wrong. After all, you are probably going to be one of the last to be warned if a business is about to fold or is struggling to meet their outgoings.

This is why credit insurance is so important. Taking the worry out of the failings of other businesses having a knock on effect on you, you will have the peace of mind of knowing that should something like this arise, you will not be affected because you have taken out credit insurance to protect against any such debts. And in the current economic climate it makes perfect sense to have insurance against such things happening. After all, if some of the big names in business we expected would be around forever have gone out of business, it could happen to anybody. But the last thing anybody wants is their business to end up in the same situation because you did not get paid by a company that is in such a position.

Without Credit Insurance

The fact is that you are likely to be way down the list of people that will get paid if customer cannot function as a business. There are so many other people who will want their share first and will have more power to get what their money back, such as banks and the Inland Revenue, that a debt that might be a lot of money to your business may not feature as important on the list of their priorities. But you are important, so it is important to have protection with credit insurance to make sure that your business does not suffer as a result of things going wrong with someone elses business. Why should you suffer when you have not done anything wrong?

Sadly the world is not fair, otherwise you would get paid. So for this reason, rather than become a victim of circumstances beyond your control, you can now do something to protect your business against debts by using our credit insurance brokers to find you the best credit insurance policy to suit your business needs. You can protect against individual clients, which is helpful if you have a big client that is paying you a large percent of your overall income. You can protect against those clients you feel are the riskiest, or protect against all income.

Our Credit Insurance Brokers

We offer a personal and professional credit insurance service and obtain the very best levels of cover and the most competitive terms whilst providing you with our DebtProtect ongoing credit insurance support whenever required.

Our credit insurance brokers will work with you to negotiate with the credit insurer, the premium, the structure of the credit insurance policy and the credit limit cover you need. This is not just during the sales process, but as an ongoing basis throughout the life of the credit insurance policy.

Debtprotect provide the best Credit Insurance for you.

We will be representing you and ensure claims are paid and that the highest level of credit insurance cover is available for your clients. You will be appointed a dedicated credit insurance consultant as your personal contact who will meet with you whenever required.

Credit Insurance Cover

Debtprotect provide credit insurance giving your business protection against bad debts.

Your business could face a bad debt as a result of your client’s insolvency or payment default. Debtprotect help arrange credit insurance cover for your business indemnifying you up to 95% for your loss which in most cases will cover a significant percentage of your profit margin.

Types of credit insurance cover

Debtprotect arrange the following types of cover – whole turnover Domestic Credit Insurance cover, export cover or combined credit insurance cover as well as single risk credit insurance cover.

We can arrange domestic policies that cover commercial risk and export policies that also include political risk. Commercial Risk Insurance covers non payment of debts due to Insolvency or Protracted Default (failure to pay for goods or services provided in accordance with a contract).

Political Risk insurance cover includes cover in the situations where the actions of government cause the payment failure. Examples include Public buyer default, Export restrictions, Import restrictions, Political events, Foreign currency shortages or restrictions, Inconvertibility, Contract termination, or Contract frustration.

All the credit insurance policies we can arrange via the insurers can be assigned to an invoice discounter or factoring arrangement. We can also help to arrange such a facility, if you require, from one of our many contacts in the market place.

Our Credit Insurance Services

Credit Insurance Brokers in the officeWe offer a personal and professional credit insurance service and obtain the very best levels of cover and the most competitive terms whilst providing you with our ongoing credit insurance support whenever required.

We will work with you to negotiate with the credit insurer, the premium, the structure of the credit insurance policy and the credit limit cover you need. This is not just during the sales process, but as an ongoing basis throughout the life of the credit insurance policy.

Debtprotect provide the best Credit Insurance for you.

We will be representing you and ensure claims are paid and that the highest level of credit insurance cover is available for your clients. You be appointed a dedicated credit insurance consultant as your personal contact who will meet with you whenever required.

We understand the importance of customer service. There is no cost to you in using our services what so ever.

Costs of clients not paying you

When you have a business that needs cover against debts, when clients are not paying you for time you have spent working for them. Credit insurance is the solution to the longer term costs of not being covered by debt insurance.

It is important for businesses, especially small businesses to be paid on time and not have to waste time and money chasing debts. The knock on effects of bank charges you may face if you depend on certain income to meet your cash flow needs can quickly mount and often make you count the cost of a customer that has not paid you. Deciding to take debt insurance by speaking to a Debtprotect credit insurance broker will give you the peace of mind you need so you can concentrate on running your business without the stress of chasing unpaid debt.

Credit Insurance Cost?

The cost of credit insurance policy depends on a number of factors. For an indication of cost simply contact us by phone, or by completing our quick debt protect quote form.

For a formal indication of terms we need a completed proposal form which can be downloaded from our website or alternatively you can speak to one of our consultants who would be glad to take the information from you.

Looking for credit insurance experts? You will be glad you spoke one of our credit insurance brokers.