Protect Your Business From the Risk of Bad Debts

March 20, 2018

Business, Insurance, News

The number of business failures in Australia is running at record levels. Around 12,500 businesses failed in 2012 and the figures for 2013 are likely to be higher again. Trade Credit Insurance helps protect against the risk of going out of business due to customers failing to pay their debts.

Key Benefits

Protect your business from bad debts and protect profit/shareholder equity
Consider the impacts on your business if you incurred a significant bad debt or accumulation of bad debts? If the net profit margin in your business is 5% and you incur a bad debt of $25,000 then you would need to generate additional sales of $500,000 just to recover the loss.

Trade with confidence and ensure peace of mind
The comfort of knowing that someone else is taking the credit risk out of the equation allows you to operate with more confidence and certainty.

Increase your sales to existing and new customers/markets
Trade Credit Insurance allows you to focus on selling more products and services to your customers by providing increased credit limits which you may not otherwise be prepared to give. The same principle applies to selling into overseas markets through the experienced knowledge and support provided by the insurers.

Provide additional security to your own suppliers and financiers
The cash-flow security provided by Trade Credit Insurance can give extra confidence to both your suppliers and financiers that your payments will not be affected by an unforeseen bad debt placing strain on your cash flow.

How Does it Work? 
Trade Credit Insurance replaces up to 90% of a bad debt subject to a low excess value per claim.

So if you’re concerned about the viability or some of your customers and want protection from bad debts, you should talk to us about Trade Credit Insurance.

Contact Us