Credit Insurance Can Be Essential To Your Business
2019 is set for a significant increase in business failures since those following the Global Financial Crisis of 2008.
Insolvencies will occur for reasons not seen before such as stress on cash flow due to stockpiling, delivery delay and failure to recognise the effect of tariff and regulatory changes.
- All business sectors are likely to see margins and their ability to pay promptly squeezed
- Several high profile insolvencies have occurred in 2018 and companies in many sectors are issuing profit warnings – even the on line retailer ASOS
- The Office for National Statistics quarterly release shows insolvency increases in Q3 2018 of +8.9% sequentially on Q2 and +19.3% on Q3 2017
- This demonstrates a fragile economy with definite potential for more business failures in 2019
Suppliers of goods and services need up to date financial information to ensure customers are able to pay their invoices and the security of knowing unpaid debt is covered by insurance. Not only does a credit insurance policy provide debt collection and indemnity for non-payment following insolvency or protracted default but also REAL TIME FINANCIAL INTELLIGENCE
A ‘buyer’ of goods and services failing to meet debt obligations or with a weakening financial position will be alerted to credit insurers in advance of information becoming public. This critical data enables a credit insured company to review their exposure with vulnerable customers and minimise potential for bad debt
Credit Insurance offers a solution – let our experts speak to you about the benefits this can bring to your business