Bad Debt Insurance
What Is Bad Debt Insurance?
Bad debt insurance provides protection for you against non-payment of goods or services when your clients are unable to pay their invoices. The basic principle is that if your customer cannot or will not pay, then the insurance company will. In many cases, this saves a business by avoiding catastrophic loss. You can continue to operate and expand safely in the knowledge that if your customer does not pay that you would not need to suffer financial difficulty as a result.
The Benefits of Bad Debt Insurance
- Bad debt insurance, otherwise known as trade credit insurance, will ensure that you do not face unexpected financial difficulty from unpaid invoices.
- Getting bad debt insurance with a reputable company and through the right specialist broker can be a massive advantage for your business. With a well-structured policy and an expert and efficient broker, you will undoubtedly save money and a significant amount of time in key areas such as claims and key credit limits.
- Expansion is so much easier for your company to achieve when you’re protected with bad debt insurance as you can open new accounts and provide increased credit lines safe in the knowledge that you will be paid.
What Types of Business Need Bad Debt Insurance?
If you run a business which provides goods and services on a credit basis, having bad debt insurance is very important. Having bad debt protection helps you to avoid the time consuming and expensive process of recovering customer debts. For many businesses, one large unpaid invoice could be enough to significantly impact cash flow. There are different types of bad debt insurance, including export credit insurance, to protect against losses when you are trading internationally. With bad debt protection insurance, you can operate your business without the risk of financial loss impacting its progression.
Why Use a Specialist Broker for Bad Debt Insurance?
- Working with a specialist bad debt protection insurance broker will allow you to access expert advice and consultation to find the best insurance policy for your individual needs. They can help you to find the right cover at the right price for most aspects of trade, including domestic, export and single account.
- There are many different forms of bad debt insurance that can be carefully tailored to find the right policy and working with a specialist broker can help to break down this complex process to make sure that you’re accessing the perfect bad debt protection cover for your business.
- Here at PH Credit, we have over 30 years of industry experience, allowing us to provide only the best service that is both cost efficient and highly personalised. Visit our about us page to learn more.
- You will be able to deal directly with our highly specialised experts who commit themselves to properly understanding your business and what is required to provide exceptional service. Your bad debt protection insurance will be managed completely by us, and you will not have to spend your precious time on hold, choosing options or explaining your situation to outsourced customer service advisors, help desks or worst of all to some sort of online chat.
How Does Bad Debt Insurance Affect Your Company’s Assets?
Because credit makes up such a large portion of your assets, it’s important that they are insured, just about everything else is and yet for most businesses the trade debtors are uninsured. A large portion of your company’s assets could be affected if your clients are unable to pay. Bad debt insurance is very important when it comes to preserving your company’s assets and keeping you in business if the worst happens.
Find Out More About Bad Debt Insurance
If you would like to find out how bad debt insurance could protect your company, please do not hesitate to contact us. All our quotations for bad debt protection insurance are provided on a strictly no cost or obligation basis.
Bad Debt Insurance FAQ’s
Bad debt insurance provides your company with protection in case your customers are no longer able to pay. If you want to expand your business at significantly mitigated financial risk, bad debt protection insurance protects your company in case this happens. There are multiple different types of bad debt insurance depending on the type of trade your company deals in.
There are many benefits to bad debt insurance, but the main one is to protect your company from easily avoidable debt. This type of insurance helps companies to expand with more financial security. Bad debt insurance can lead to increased funding for your business, as it is better protected to deal with customer insolvency. This can lead to your company being better able to make competitive banking negotiations. Bad debt protection insurance can allow you to develop a stronger commercial relationship by offering more favourable terms. This is because you are protected if the customer cannot or will not pay you. This should then give you a commercial edge over competitors who are offering restricted credit limits or short terms of payment.
There are multiple different types of bad debt insurance, each providing a specific cover that is right for your company. These include:
• Domestic credit insurance allows you to be protected in the event one of your national accounts declares bankruptcy.
• International bad debt insurance allows you to achieve more international expansion by making you more secure in terms of international financial risk.
• Specific account insurance is a form of bad debt insurance that protects you against a specific company or group of companies that are significantly likely to declare insolvency.
• Export bad debt insurance is a type of insurance that is specifically for foreign trade accounts.
A fully trained and experienced bad debt insurance broker is able to use their industry experience in order to negotiate the best terms for your company and its specific needs. If your company has many complex dealings, it’s a good idea to consult with a bad debt insurance broker to ensure you find the best cover for you. You would not be subject to hold music, multiple phone options, call back times of days which then requires a fresh explanation and more delays. You would however receive expert and clear advice that would allow you to make a commercial decision. We would be disappointed if we had not either returned a call or replied to an email within 10-20 minutes.
Just about all companies that sell goods or services on credit terms to commercial customers’ needs bad debt protection insurance. Bad debt insurance helps to mitigate these risks so you can move forward with your business partnerships and expand as safely as possible. Bad debt insurance brokers will help you through all aspects of the policy administration and in the event of a claim to help you with this from slow payment to claim payment.
Our bad debt insurance experience is unrivalled. Here at PH Credit, we will be able to use our specialist knowledge and experience to find you the best possible plan. As a specialist bad debt protection insurance broker, we can offer you expert and impartial advice which will aid your business. Our small team of specialists will assist you with everything you need to know - we know your time is valuable. You don’t need to spend your time on the phone explaining your bad debt protection insurance needs over and over again. We will provide expert advice straight away. Without a specialist broker like PH Credit, you run the risk of wasting your time and money.