HWH are Trade Credit insurance specialists. With our experience and long-standing insurer relationships, we work with our clients to provide comprehensive Trade Credit insurance solutions.
Trade Credit insurance safeguards a business against the failure of its customers to pay their trade credit debts.
“In the course of a year, the average company will lose more than 3 of its active customers because of financial distress, insolvency, administration or receivership.” Credit Management Research Centre
Trade debtors can be the largest asset a company holds on its balance sheet and, like the other tangible assets, it is a very wise decision to insure this asset, protecting the business’s cashflow and profits.
Why Insure?
Protection: Remove bad debts from the business equation, maintaining cash flow, profitability and protect budgets.
Customer Profiling: Establish appropriate Credit limits based on current customer financial positions.
Access to Finance: Trade Credit Insurance cover can be used as security to facilitate finance from banks.
Optional Debt Collection service: so you can carry on running your business whilst your bad debts are being chased by you insurer.
Below are examples that would benefit from credit insurance:
- Companies with previous experience of bad debts
- Companies that are looking to expand/diversify or that export
- Companies that use funding e.g., invoice discounting or debt factoring
- Companies that have a concentration of risk with high credit exposures on several key accounts
