Credit Insurance Explained

Businesses that offer trade credit to their customers need to consider the risks associated with that – such as the potential for bad debts, slow payments or insolvency.

These occurrences can badly impact on a business’s cash flow and profitability, and its ability to operate day-to-day or to invest in new opportunities.

One of the main problems is that a SME might have a lot of business vested in only a handful of key customers. This means that if one of those customers should to go out of business or fail to pay a large debt, the SME could be left high and dry.

Credit insurance provides cover for the working capital you have tied up in your accounts receivable, in case of non-payments or insolvency.


If you would like to know more about credit insurance, speak to your local Reliance partner.

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