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”. – Source – CMRC
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 insurance this asset, protecting the business’s cashflow and profits.
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 the characteristics of companies that would benefit from Credit insurance:-
- Previous experience of bad debts
- Companies looking to Expand/diversify or that export.
- Companies that use funding e.g. Invoice discounting or debt factoring
- Concentration of risk with high credit exposures on several key accounts