The demands of the modern economy are borne out by UK
insolvency statistics: Over 29,000 companies are expected to fail in 2024 – a year-on-year increase of 5% and the highest figure in 12 years according to the Allianz Global Insolvency Report.
This in turn creates a riskier trading environment, for many well-run, companies, who through no fault of their own, may experience bad debt.
Working capital is the biggest asset of any business. Without cash flow there is no business. Although other insurances may be legally required, arguably, Trade Credit Insurance is the most important additional protection a business should have – but is often the most neglected. Our clients regard it as more of an investment than an outlay because so many make a claim at some point.
What Is Trade Credit Insurance?
Bad debts can be crippling to a company, with the debt itself being dwarfed by the volume of sales required just to replace it. For example, if you have a 5% profit margin and suffer a £50,000 debt, you’ll need to win additional sales of £1 million to replace the lost profits.
Trade Credit Insurance protects against losses arising from non-payment of goods or services sold on credit terms, due to your customers’ insolvency or failure to pay within your agreed payment terms. But in the first instance, Credit Insurance can help you steer away from risk, by providing access to information to help you assess the creditworthiness of a potential customer. By helping you manage the risk of customers defaulting on their payments, Credit Insurance can provide you with financial security by covering the cost of unpaid invoices (usually 90% of net debt), should the worst happen.
The types of Trade Credit Insurance we can offer are:
What Are The Benefits Of Trade Credit Insurance?
- You are protected against bad debt and cash flow problems.
- It can facilitate growth by allowing you to explore new markets safe in the knowledge that cash flow is protected.
- You have increased confidence in offering credit terms to new (and existing) customers.
- Better research means a reduced risk of non-payment and insolvency.
- It increases your credit rating and ability to obtain finance.
- It improves the discipline of your company’s credit control.
- You are indemnified against losses. It’s the insurer that assesses the risk, not you.
All of which can bring peace of mind and a better night’s sleep!
Which Sectors Benefit From Trade Credit Insurance?
We work across all sectors but clients are required to have a minimum turnover of £1m.
Sectors that particularly benefit from Credit Insurance include (but are not limited to):
Client feedback
Why Choose Us?
Our clients tell us there are many benefits to working with us:
Expertise
Our Trade Credit Insurance Division is headed up by Corran Barnes and under his stewardship we have achieved Specialist Credit Insurance Broker status with our panel of insurers - something very few independent brokers in the UK can claim. You may have arranged Trade Credit Insurance cover directly in the past but as a specialist broker we will ensure that you are set up correctly on the terms that are appropriate for your business needs. We are a full-service broker, and offer in-house training for your staff, regardless of their level of understanding or experience of Trade Credit Insurance.
Relationships
Our clients repeatedly tell us that one of the biggest benefits of working with us is the relationship they have with their contact at C&C. We take the time to really understand you and your business: your goals, your challenges and the specific market you operate in. We become an extension of our clients’ Credit Team, intrinsic to their business, often discussing risks and potential exposure on an almost weekly basis.
In-house claims
As we say, so many of our Trade Credit Insurance clients make a claim against their cover, at some point. But when that situation arises, we do most of the heavy lifting for you. We will take the lead on the process and manage as much interaction with the insurers and loss adjusters as possible. We will challenge, chase up and champion your case all on your behalf. Having our team in your corner at such a difficult time brings immense peace of mind to our clients.
CONTACT OUR SPECIALIST TRADE CREDIT INSURANCE TEAM TO DISCUSS WHICH OPTIONS ARE RIGHT FOR YOUR BUSINESS: 0161 676 7834
