Trade Credit Insurance
Trade credit insurance covers your receivables due within 12 months, so that your cash flow is safeguarded. If you are worried about bad debts keeping you business from growing, trade credit insurance can provide peace of mind and cut the time managing your customer debts. It can also protect cash flow and receivables, making your profit line more secure and demonstrate the strength of the business to your bank, auditors, or your investors.
Here at PMJ Risk Solutions we have access world leading providers of trade-related credit insurance solutions. We are here to help you respond to changing business environments and benefit from credit insurance. Whatever your size, from SME to multinational companies, PMJ Risk Solutions will be able to work with our providers to find the best solution, at the price that is right for you.
Top Reasons to purchase Trade Credit Insurance
- Protection: To quickly replace money lost through bad debt
- Speed: It helps you make the right decisions more quickly, improving efficiency and ultimately profitability
- Peace of Mind: Feel safe in the knowledge that your outstanding invoices are protected
- Funding: We help in securing trade finance which improves banking relationships and access to finance
- Profitability: Improve profitability by safely increasing your exposure to more customers
- Competitiveness -It helps you remain competitive by enabling you to offer open credit when your competitors can’t
- Growth: It facilitates expansion with security and allows you to deal confidently with new clients and increase credit lines to existing ones
- Information: You gain access to greater customer intelligence that leads to balanced risk decisions
- Cash Flow: It complements and enhances existing credit control procedures to improve Days Sales Outstanding’s
- Confidence: It provides you with confidence to enter new markets, including overseas
Main Benefits of Trade Credit Insurance in More Detail
Trade credit providers can assist you in the collection of your business’ overdue accounts, to improve the speed and success with which you collect money owed to your business. Furthermore, should the worst happen and one of your buyers becomes insolvent, a prompt settlement of your claim will safeguard your cashflow.
Better Trading Relationships With Your Suppliers
You may be able to negotiate more favourable terms with your suppliers, since they know the business they are trading with has taken steps to protect its assets and balance sheet.
Risk Avoidance And Reduction of Bad Debt
With trade credit insurance from PMJ Risk Solutions providers use unique proprietary information. Information is obtained by visiting companies and from other clients. This, coupled with detailed knowledge of businesses and trade sectors, enables insurers Risk Analysts to set appropriate credit limits.
Help In Securing Trade Finance
Banks and trade financiers are often more willing to provide trade finance, or may be prepared to offer more favourable lending terms to businesses, with a credit insurance policy sourced by PMJ Risk Solutions in place.
Some Common Questions or Objections To Trade Credit Insurance and Our Response
We self insure against bad debt with our own money reserves
- Reserve funds may not be enough
- Only credit insurance can protect your business against all default and late payment situations
- The sums companies typically provide for bad debt don’t cover their maximum exposure to main customers, whereas credit insurance does
We don’t need Credit Insurance because we have excellent credit control
- Credit insurance is designed to work with your credit control, not replace it
- Credit control can’t protect you from unexpected insolvencies
- The quality of your credit control will be reflected in the quoted premium
We use a risk disk and/or trade references
- Can be very useful but beware: filed accounts tend to be out of date and you could find yourself basing credit decisions on information that’s 12–18 months old
- You can only get an accurate understanding of how a business is trading from its current payment performance, management accounts and public data, and having it all professionally analysed for trends
We are close to our customers and suppliers and know them well
- It’s what you don’t know that can hurt you
- Do you know how they are paying their other suppliers or how their customers are performing?
- If your customer has a problem caused by one of their customers failing, or by a reduction in bank lending, we are likely to know about that before you do
Please do not hesitate to contact our sales team to discuss your needs.
Your dedicated team at PMJ Risk Solutions will assist you in the placement of your Trade Credit Insurance
Get In Touch
Please don’t hesitate to contact the PMJ Risk Solutions team to discuss any of your insurance needs.