In an increasing turbulent economic landscape, businesses need to protect their balance sheets and optimise working capital whilst minimising the impact of bad debt.
You supply goods or services on credit terms, therefore a substantial percentage of your working capital will be tied up in accounts receivable.
Trade Credit Insurance can protect your accounts receivable and ensure you get paid for the goods and services that you supply.
The Benefits of Trade Credit Insurance are clear:
1. Protects your receivables against bad debt
2. Protects your profit and shareholder equity
3. Provides additional security to offer suppliers and financiers
4. Provides independent risk assessment of your key customers
5. Can improve your own credit management procedures
6. Confidence to expand your business
The impact of credit risk on your balance sheet can be significant!
Consider The Numbers:
To replace a $200,000 bad debt (based on 5% net profit margin) you need an extra $4,000,000 in