Think of your largest customer... Now think what the effect would be if this customer's business failed tomorrow...
If that thought sends a shiver down your spine, you may be interested to know that there is an insurance solution to this risk. I appreciate your time is precious so here are the key points.
90% of the outstanding debt paid within 45 days of the customer’s business failing.
Credit Insurance Policyholders are often able to negotiate a reduction in the rate their bank charges on overdrafts, thereby offsetting the cost of the insurance.
The insurer provides you with detailed credit limits for each customer, reducing your exposure to bad debt.
Cost? As a “ball park” indication - £0.10% to £0.60% of relevant turnover, depending on your trade sector and previous experience.
Bordengate Insurance Brokers have access to the world’s leading credit insurer, offering protection against the effects of bad debt. If you would like to know more, and arrange for a quotation (free of charge, and without obligation) then don’t hesitate to get in touch.
Credit Insurance - A structured approach to credit control, and protection of your ledger from bad debts.