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.

To find our more about credit insurance product, follow the like here.