As the country continues its windy road out of the pandemic, it may seem like things are on the up and if your business survived the turmoil there is no need to look at extra costs, such as Credit Insurance. But this may be a costly oversight.
What is Credit Insurance?
Credit insurance (sometimes known as Trade Credit Insurance) provides cover for businesses whose customers are indebted to them for their products or services and do not pay. The cover may also protect against customers who pay their debt later than the agreed terms
Why is this Important Now?
Although compulsory liquidations are currently down a significant amount compared to 2019, this does not mean that the importance of Credit Insurance should be overlooked.
A significant amount of support has been given by the government over the past 12 months, which has provided a lifeline for those businesses teetering on the edge due to the pandemic.
However, the pandemic is not over yet, meaning the future of the economy is still uncertain. Government support may have just delayed the inevitable for some businesses and with so many sectors feeling the impact, we are not out of the woods yet. Many businesses have had to make costly adjustments, and only once trading begins without the aid of government support, will we see the true extent of the cost.
Not just for the Big Guys
Credit insurance has for many years been seen as something purchased by big companies, however, with the extending market releasing products for SME’s now is a good time to look at what it would cost to protect you against non-payment from customers.
If this is something that keeps you awake at night, or maybe even something you haven’t considered before, then please contact our team, who would be happy to run through the details and obtain a quotation, on 0808 161 7008.
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