To experience serious growth, a business must recognise, confront, and embrace risks, using them to their advantage. Strategic planning to mitigate risks, and reduce their impact and severity, is essential. Since non-payment by customers is one of the biggest risks to businesses, companies can use credit insurance to protect against risk and promote growth.
Credit insurance lets businesses handle more risk by protecting them from customer insolvency and payment default. Businesses that have credit support can take greater risks, such as moving into new markets, making high-risk investments, or developing new partnerships with confidence.
Businesses are concerned about the economy, which can make them reluctant to take on the kind of risk that could deliver significant rewards. Being credit insured safeguards the company against risks that could otherwise cripple the business. Credit insurance assures cash flow and lets businesses plan strategically for growth.
There are four key ways credit insurance helps businesses embrace greater risk for growth:
- Achieve competitive advantage in the marketplace by identifying risks and opportunities for growth
A good credit insurer will add value to your business by acting as your eyes and ears in the insurance market. They can monitor market movements, and help you identify good opportunities and risks for investment. They can also check your prospective clients’ stability, creditworthiness, and reputations meet your required standards. These insights will help you be better informed to make strategic business decisions and set your trajectory for sustainable growth.
Our underwriting teams have access to live data on more than 100 million businesses to mitigate risk for your company.
- Provide increased access to finance
Credit insurers help guarantee business cash flow and let you maximise market opportunities by providing easier and, sometimes, cheaper access to finance. Credit insurers can provide your bank with the reassurances they need. This lets businesses make riskier investments when the market opportunity and conditions are best.
Banks view businesses with trade credit insurance favourably. Your credit insurer can help cash flow by collecting commercial debt from customers and improving your access to finance with your bank.
- Cover losses that aren’t your customers’ fault
Business growth can be impaired by certain incidents, such as political intervention, currency exchange issues, terrorist attacks, or natural disasters. These can’t be attributed to your customer, but will have an equal effect on your bottom-line and business strategy. Credit insurance can cover these losses and protect your cash flow.
- Stay ahead
Credit insurance lets you focus on sales and business growth, while reducing any negative impact that non-payment and customer debts might have on your business. This gives your organisation a clear advantage over competitors, protects profits, and provides peace of mind.
Credit insurance helps businesses trade with confidence, plan for strategic and sustained growth, and explore new markets or products, knowing that the business is protected against credit risk. It’s a valuable safeguard that lets businesses capitalise on market opportunities for growth.