Ease Financial Fears With Trade Credit Insurance

Ease Financial Fears With Trade Credit Insurance

Credit Guarantee | April 12, 2017

According to Charles Nortje, the CEO of Credit Guarantee, even before our recent tumble to ‘junk’ status, South Africa had already experienced several years of slow economic growth.

As a result, many businesses are carrying a lot of debt.

As a small business owner or entrepreneur, the economic situation may have left you wary of taking on new business. The challenges you face in today’s economy are numerous, and you may be asking yourself:

  • If I take on that new project, will the client pay the invoice?
  • If my client does not pay that invoice, how will my business pay staff for the work done?
  • Can I extend more credit to my client? What about the risk?
  • What if I do not take on the new project out of fear of non-payment, will this not be a loss to my SME anyway?

You want to grow your small business, but you want to do so at minimal financial risk. You want to take on new and ambitious projects, but you don’t want to endanger your current operations.

The last thing you need is to be forced to retrench staff or, even worse, close up shop because clients could not pay their debts.

These concerns are valid and are being experienced by businesses across the country. However, there is a way, a solution that allows you to take on business growth without the risk.

Mitigate Your Risk, Maximise Your Growth

Remember, as more companies try to make fewer rands stretch further, your small business becomes more vulnerable to its buyers defaulting on mismanaged debts. When you may already be working in narrow margins, the non-payment of a debt can be crippling, and is a hit that few SMEs can afford to take.

The question is, then how do you take on the growth that you know a business needs to survive, without sinking it in tumultuous economic waters?

At the risk of overextending the metaphor, your business needs a lifeline, a guarantee that the risks you take on are shared and mitigated, and that non-payments will not scuttle your entrepreneurial venture. Simply put, your business needs trade credit insurance – the insurance of your debtors.

Insure your debtors against the inability or unwillingness to meet their contractual obligations, and your business will be covered against the loss of their payment default, mitigating the sting you’ll feel in your bottom line.

The crux of the matter is that business success is often built on confidence: confidence in your organisation and its liquidity; confidence in your partners and their reliability – ultimately, it can depend on your confidence in your ability to take on risks and survive them.

Trade credit insurance gives you that confidence.

Contact us today to find out more about the services we offer small South African businesses, including domestic and international trade credit insurance, and TAKE ON new challenges, new growth, and new business with confidence and Credit Guarantee!

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