What is Credit Insurance?

Credit Insurance provides cover for businesses against non-payment of short term finance, such as invoices, from your customers. Businesses frequently come across issues related to unpaid and overdue invoices, but credit insurance helps to safeguard your company against unpaid debt. It gives you the confidence to extend credit to new customers and improves access to funding, often at more competitive rates.

Put simply, should the worst happen, such as a customer’s insolvency or protracted default, Credit Insurance can protect your bottom line and maintain your cashflow.

What is Commercial Credit Insurance?

Commercial Credit Insurance is another term used for Credit Insurance. There are many different terms used to describe Credit Insurance including: Trade Credit Insurance, Export Credit Insurance, Invoice Insurance and Bad Debt Protection.

How does Credit Insurance work?

When you set up a Credit Insurance policy, you provide information on your business and your customers, including a list of top buyers and a recent loss history. We review the financial health of your buyers to establish credit limits and trade credit terms, such as the maximum invoicing period, and your premium.

If a customer does not pay you when they should have done, usually within 30 days or more, or within any extended time, you can notify us and we will collect the debt on your behalf. If the company becomes insolvent or is unable to pay the balance they owe, you can file a claim to recover the debt.

For further information on Credit Insurance for your business, contact our office: 01204 398816 / info@independentbusinessfinance.co.uk – we can arrange Credit Insurance for you and help with any questions you may have!