With most lines of insurance, you instigate a policy, and there it sits passively in the background. It’s only if you need to make a claim that you get to test the quality and suitability of the product. Trade Credit insurance is very different – yes, it is about the debt insured, but it’s a much broader service that becomes an integral part of how you do business. That is why your choice of broker and insurer is so important.
Understanding Trade Credit Insurance for your business
When you take out a trade credit policy, you are instantly entering a partnership with your insurer, which will help safeguard your debtor’s book before, during and after you do business with a new company. For example, with Allianz Trade Credit, you have access to real-time data on the credit worthiness on an extensive list of UK businesses. This becomes a proactive tool in targeting who or how you do business with. Rather than responding post-sale with a credit check, you can enter negotiations forearmed.
Benefits of using Trade Credit Insurance
It’s not just at the outset of a new business relationship that this brings value. Allianz will be monitoring your clients for any adverse change and keeping you informed if the financials are deteriorating. Finally, if you are having difficulty recovering a debt, then you have the team at Allianz to help. Often, just the fact that you have a large finance business backing you is enough to move the debt up a company’s priorities!
In addition to the obvious benefit of mitigating your bad debt risk, many companies find that they can lend money at more advantageous terms by virtue of having their debt insured.
Further reading about Trade Credit Insurance
Please check the following articles from our website, “Trade Credit in 60 Seconds” and “Are you at risk from your Customers?”. You can read about Trade Credit Insurance in greater depth here.
And if you’d like to know more and what it might cost for your business, please get in touch with our super-friendly and knowledgeable team at Pelican! If you’d prefer to talk, call us on 0333 0912730.
