Credit insurance is a risk management tool that protects businesses from losses arising due to non-payment of trade debts. It offers coverage for both domestic and international trade transactions, ensuring that your receivables are protected against insolvency, protracted default, or political risks. Â It is used widely by businesses in the United Kingdom.
Benefits of Credit Insurance:
-
Mitigating Bad Debt Risk: Credit insurance shields your business from the financial fallout of non-payment by customers, whether due to insolvency or other reasons.
-
Enhancing Cash Flow: By safeguarding your accounts receivable, credit insurance provides a safety net that enables you to confidently extend credit terms to customers, thereby improving your cash flow.
-
Facilitating Access to Financing: Lenders often view credit insurance as a sign of prudence and risk management, making it easier for businesses to secure financing at favorable terms.
-
Enabling Expansion into New Markets: With the assurance of payment protection, businesses can explore new markets and customers without the fear of non-payment, thus fueling growth opportunities.
-
Improving Supplier Relationships: Credit insurance not only protects your receivables but can also extend coverage to your payables, fostering stronger relationships with suppliers by assuring timely payments.
How We Can Help: At Shadowfax Funding Solutions, we specialise in connecting businesses with some of the largest credit insurers in the industry. Our team of experts understands the unique needs of your business and works closely with you to tailor a credit insurance solution that aligns with your goals and risk appetite. Â Email us: info@shadowfaxfunding.com or call us on 0113 5182253.