How Credit Insurance Will Make Your Business More Profitable

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Profit is what you are in business for. You want to increase margin and not turn over. Credit Insurance is the only way to achieve this. Credit Insurance meets all criteria for B2B companies selling credit terms. You will be more profitable because you can sell more, which will increase your efficiency and reduce your costs. Bold claims might seem bold and you may be right, but these are claims that can be substantiated.

Credit insurance can help you sell more

You have two options to increase sales: sell more to your existing customers or start selling to new clients. What’s the problem? It boils down to: Are they worth the money?

While you may know the good things your clients do, what do you know about how they are able to manage larger credit lines?

When you meet new customers, it is possible to do your research, talk with them, review their financials, get trade references, and ship small to minimize risk. Do you think that is what you started your business for? If so, how much time and expertise do you have to make the calls?

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Credit Insurance could be an option. This would allow you to pass your credit assessment on to experts in the field. This approach allows you to trade more openly and is secure knowing that your credit insurer will replace 90% if things go wrong.

Your costs can be reduced by credit insurance

A client fails leaving you with a bad debt of £20,000. Although it may seem absurd, you are still operating at 10% margins. That £20,000 has come straight of your bottom line and you need to make a further £200,000 of sales all paid for and all at 10% margins just to cover your position. If you are credit insured your loss would be a mere £2,000 leaving you requiring just £20,000 of sales to recoup your losses.

Sales can only be made from existing and new clients. According to research, it takes ten times as much effort to find a new client than it does to retain an existing customer. Bad debts can not only impact your bottom line, but also force you to replace the customer.

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Credit insurance can make you more efficient

You should ask yourself why you started your business. Are you doing what is most satisfying and enjoyable? Do you waste your time doing things like risk assessment, collecting debt, or chasing down new accounts to replace the ones that are failing?

Credit Insurance is a service you purchase that:

1. Evaluate the creditworthiness of your customers

2. Offers a framework for credit management

3. Collects out if the customer doesn’t pay

4. If the collection process fails, settle your loss

5. Access to lower-cost finance

6. Keeps you informed about economic developments in countries and sectors where you trade

7. This powerful marketing tool allows you to verify a prospect’s creditworthiness before making your first contact.

Credit Insurance Plus should be contacted if you’re in business and give credit.

We are aware that your client’s credit will be used by someone else, and you will lose the sale. Because lenders are not willing to lend money, many businesses view credit from suppliers like a right bordering on a quasi overdraft.

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Even worse, they have extended their terms to you and are now dragging their feet, delaying payment past due dates and requesting higher rates. You are quickly becoming the lender of choice for your customers by offering them unsecured interest-free loans on goods they have received. It is not an easy position to be in. Research shows that 40% of companies’ current assets is made up of accounts payable. Your chances of a customer defaulting and leaving you without unpaid invoices is much lower than the odds of your premises being set on fire. Credit Insurance is affordable and readily available for this risk. Contact us today. After all, you have nothing to loose except your company.