27 February 2023
2022 saw a total of 22,109 company insolvencies, which was the highest number recorded since 2009 and 57% higher than was seen in 2021 (Source: Government Statistics).
Trade Credit Insurance provides cover for bad debt and enables your business to recover up to 90% of monies owed to you, giving you peace of mind and the confidence to grow.
Our specialist Trade Credit team here at Verlingue have identified some of the ways that Trade Credit Insurance can benefit your business:
- Protect your cash flow: Your Policy will provide cover for payment default, ensuring minimal disruption to your cashflow.
- Confidence: The cover will enable you to diversify or grow beyond your traditional markets in confidence.
- Easier access to finance: If you need to obtain finance to improve your working capital position you can assign the Policy to your financier to give them the assurance their investment is safe. It can also lead to increased levels of funding.
- Increased revenue: Trade Credit Insurance removes the risk of non-payment (default) from your sales invoices. This allows you to offer extended credit terms to your customers which can increase revenue and profit.
- Early warning: Access to the credit insurance market gives you information on your customers which can alert you to high risk companies before you expose your company to unnecessary risk.
- Reduce bad debt reserves: You are able to free up cash reserves that are allocated to paying off bad debt.
Verlingue places credit insurance risks for businesses spanning a broad spectrum of industries and turnovers. From start-ups to businesses with turnovers in excess of £1billion, we tailor solutions to protect you against bad debt and the risk of non-payment from your customers.