Credit insurance gives you insight into the creditworthiness of your customers, both existing and potential. This information allows you to better align business decisions with the risks you face, thus keeping more control over your debtor portfolio. This is not only wise, in many cases it is essential to ensure the continuity of your business. If payment problems do arise, the credit insurer will take over the collection process. This not only saves you valuable time and energy, but also prevents you from having to chase outstanding invoices yourself. Because you would rather not deal with that!
Substantial blow
In the event of bankruptcy, the insurance will pay out the outstanding amount, preventing your company from unexpectedly facing a major blow to its liquidity. Especially at a time when the economic climate is erratic, such a safety net is not an unnecessary luxury but a wise precaution. For entrepreneurs operating internationally, credit insurance also provides cover against political risks. If a customer is unable to receive delivery due to circumstances in their country, or if a government is unable to meet its payment obligations due to a shortage of hard currency, for example, the insurance offers relief there too. These may be risks that seem far from home, but the consequences can be felt locally.
Strategic move
Especially at a time when payment morale is under pressure and economic prospects remain uncertain, hedging debtor risks is no longer a consideration, but a strategic move. It not only protects your turnover, but also creates peace of mind, space and confidence to continue investing in growth. Credit insurance is therefore not an expense, but an investment in your company's resilience.
Wondering what this could mean for your organisation? We would be happy to talk to you and explore the possibilities with no obligation.
