Top seven benefits of domestic trade credit insurance
When you take out trade credit insurance from Credit Guarantee, you protect your accounts receivable, as you transfer the risk against non-payment of your debtors, from your business to us.
A debtor could default on a payment at any time for a vast number of underlying reasons. From a sudden change in the economy or exchange rate fluctuations that leave your customer insolvent, you need to make sure you always protect your largest asset – your accounts receivable. If your customers are unable to pay you for their credit purchases, these losses can present a crippling threat to your business.
At Credit Guarantee, we create our trade credit insurance policies to secure your debtors’ books, and as they are tailor-made to suit your needs, you will receive a number of important benefits:
- Cash flow relief
If your customers become insolvent, or do not pay their bills on time, your business is covered, allowing your business to maintain its cash flow and continue operating. We protect our clients’ cash flow by replacing their cash promptly, should any customer’s insolvency or payment default occur.
Whether you’re trading with established customers or are seeking new markets, you can use trade credit insurance to protect your cash flow and balance sheet against the unexpected shock of non-payment. Contact Credit Guarantee to get a personalised quote for your business and industry.
- Better debt management
We assist our clients to assess the quality of current and potential clients. This helps you manage who you can offer credit sales terms to, and the duration, thus lowering the number of incidences of bad debt and debt collection practices.
- Improved Sales
We provide your business with the ability to grow your sales through existing customers, potential new customers and give you the opportunity to enter new markets and sectors that you may have otherwise considered too risky. You can also boost your sales by offering customers and prospects more favourable credit terms, while eliminating the need for costly debt collection letters and services.
Access to new markets
Including development of markets in different industries to expand business operations, our trade credit insurance policies offer protection against unique export risks. We have industry experts who study particular markets. Therefore, we can provide our clients with the market knowledge needed to make informed decisions in foreign markets.
In addition, we offer you and your business the absolute confidence to explore higher risk business opportunities you would normally avoid for fear of non-payment.
- Collection services
We give expert advice on collection techniques and can provide access to our cost-effective collection services. Our clients also benefit from lower legal costs through the improved buying power of our collection services.
- Facilitate bank financing
Banks and other lending institutions will typically offer more favourable lending terms to businesses that have trade credit insurance, and it can assist you to expand your business operations.
- Free training
As a client, you gain access to the free training events, that we hold across the country and leading information from our experts. You will receive much needed information on all the intricacies of trade credit insurance and strategies on how you can utilise your policy to attain the best competitive advantage in your market.
Protect your bottom line, take advantage of all the benefits we offer our clients and cover your business with trade credit insurance today.
Credit Guarantee is a licensed financial services provider.