Protect your business from bad debtContact Us
It’s true that as a result of a company insolvency at least ten other companies suffer financial difficulties and that bad debt is now one of the major causes of cash flow issues and business failure.
However it’s important not to think of bad debt as an unavoidable risk, there is a way to seize the initiative. Today, Russell Davis, UK Commercial Director for Coface, answers some the top six questions that business owners ask when looking to protect themselves against bad debt.
What costs are involved?
The price of Coface Credit Insurance is set according to the turnover of a business and its profile, including industry sector, number of customers and previous loss history. It costs upwards of £3,500 depending on these factors.
Can I pick and choose the customers I want to insure?
You don’t have to insure all your customers. Coface will work with you to structure a solution which meets your requirements.
Does the policy only provide cover in the event of an insolvency?
A credit insurance policy protects you against unpaid invoices and insolvencies, giving you peace of mind. In addition to this with a Coface TradeLiner policy, disputes are covered (subject to policy terms and conditions).
How do we make a claim and how much will we get back?
Claiming is straight forward and you can get back up to 90% of a net debt. Our dedicated client services team can guide you through the process. Once claims have been assessed and validated, they are paid within 30 days meaning you can plan for business growth.
Will my bank mind if I use a third party for credit insurance?
No, we work well alongside all bank and funders. Your bank will request some level of protection if they are investing in your business and credit insurance works the same. It’s an added layer of protection for your company and if the bank has a vested interest in your business, it will need you to have adequate risk management solutions in place.
What is the difference between invoice discounting and credit insurance and can they work alongside each other?
Invoice discounting is a funding solution, credit insurance is not. We work alongside invoice discounting providers and funders to provide additional security for all parties, and preferred rates.
To find out how Coface can help protect your business complete the call back form or call 0800 085 6848
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As the lockdown restrictions ease, the Government has given more businesses the green light to start operating again, provided they can observe the necessary social distancing and infection control measures.
Many may have seen the welcomed announcement by the Government on their intended support to the UK Credit Insurance Industry. We are actively participating with the ABI and government representatives but it is difficult to