Insurance

MANAGING YOUR BUSINESS’S CREDIT RISK

AT A TIME OF INCREASING INSOLVENCIES

Experts are pointing to an increase in the number of insolvencies in all sectors which is backed up by economic research conducted by trade credit insurer, Atradius, revealing that UK business insolvencies will be 33% higher in 2022 than in 20191 .

According to our 2022 risk survey, businesses in the asbestos industry are most concerned about liquidity/credit risk. Managing cash flow is a high priority for every business, so a key question is how do you manage credit risk at a time of increasing insolvencies? It is here that Trade Credit insurance can be of assistance. By exploring Trade Credit insurance, you will have access to detailed underwriting data that is more sophisticated than a simple credit check, this underwriter feedback will help you determine the credit worthiness of your customers when granting credit.

Trade Credit insurance not only allows you to trade with the security of knowing that the majority of your debtor ledger is insured; many credit insurers include collection services for doubtful debts resulting either in the money being collected or a claim being paid.

Could your business benefit from

Trade Credit insurance?

Any company that provides goods or services to other businesses on credit terms may benefit from Trade Credit insurance. Companies from small SMEs to major internationals can and do benefit from this type of cover.

Trade Credit insurance: w Protects your business against the risk of a customer being unable to pay for goods or services provided on credit terms w Protects your business even if the customer becomes insolvent w Supports best practice credit risk management processes and procedures w Improves business reputation and stability w Frees up cash from bad debt reserves for better commercial use elsewhere

Get in touch

To find out more about protecting your business during a period of economic uncertainty, please get in touch with our asbestos insurance specialist, John Madden, to discuss your business’s insurance and risk management requirements. Call 020 7977 4800 or email srisenquiries@specialistrisk.com

Sources: 1 https://www.creditinsurancenews.com/atradius21article.php