We work closely with one of the UK’s largest Credit Insurance Specialist. Credit insurance covers a loss following the failure of its customer (borrower) to repay amounts owed by the borrower under a lending agreement. The non-payment by the borrower under the lending agreement may be protracted default (repeated non-payment by borrower for whatever reason) or the non-payment may be caused by the borrower’s insolvency.
- In 2015 the UK Corporate bad debts doubled to £17 billion from £8.4 billion in 2014
- Over 2,000 companies experience a bad debt every week with the average bad debt being £30,000
- Companies that do not buy Credit Insurance are three times more likley to go bust
- On average manufacturing companies have 40% of their assetts tied up in money owed to them. With a servicing company it usually represents at least 80% of the assets.
- Having a Credit Insurance policy gives confidence to anyone investing in your company including shareholders, banks, invoice finaciers and suppliers. It may help a company become a better risk so that they can borrow more money.
- A Credit Insurance policy can help the business take on new customers with confidence (in export markets, for example)
- A policy can offer state of the art Credit Management at a cost effective price
- A Credit Insurance policy offers a budgetable figure for bad debts rather than a provision which has to be guessed at and is usually woefully inadequate
- A policy helps improve cashflow so borrowing costs are reduced
Ernest R Shaw work closely with a long established Credit Insurance Specialist, who will be able to assist you in your needs.