Delivering credit insurance for manufacturingNeed help? Get in touch.
Why credit insurance is important in manufacturing
As a manufacturing business you’re in the middle of a suppliers’ and buyers’ network.
That puts you at varied risk: from the companies who provide your raw materials and equipment, and from those who buy your products.
The bottom line is this: if customers fail to pay for what you make and sell, you can’t afford to purchase raw materials and equipment, or pay your workforce. What’s more, the true cost of bad debt can be much greater than the cash amount you lose. If your average net profit margin is 5%, you’d have to generate £200,000 worth of extra business to replace a £10,000 unpaid invoice.
Choose a bespoke credit insurance policy from Coface and you’re back in control of your trading risk. If a customer becomes insolvent or defaults for any reason, you can claim for the loss and keep your cash flow healthy. You also have an opportunity to negotiate more advantageous terms with suppliers.
They’ll see you as a better risk when they know you have credit insurance. You’ll be more attractive to potential investors and lenders too. And our advice can help you set up a more efficient credit management system.
Know more, grow more
As a Coface policyholder you can prime your business for growth with free anytime access to unrivalled business intelligence and risk analysis.
- Check any company's creditworthiness before doing business with them
- Get the lowdown on a country or sector
- Plan more effectively with our exclusive insights on business and economic trends
Coface it first and trade with confidence.
To find out how Coface Credit Insurance can help your business contact our team for your free, no obligation quote.