Trade credit insurance protects the biggest asset of any business, the debtors ledger. Put simply having a trade credit insurance policy gives you the ability to insure your debtors ledger and protects you from all forms of administration or insolvency.
Questions you should ask yourself:
- Are you limiting your potential to grow by not taking on new clients or limiting the credit you extend to both new and existing customers?
- Once you have provided your services what options are available to you if your customer won’t or can’t pay?
- Do you really know the financial strength of your customer?
- If your customer loses their largest client could they still pay you?
- If your largest client failed, how could that effect your ability to pay your suppliers?