Just as you would insure your car or home against accidents or damage, it is important to protect your business against the potentially devastating effects of bad debts. Credit insurance is intended to help businesses keep a stable financial position even in times of economic instability. There are two main types of credit insurance: commercial risk insurance and political risk insurance. Commercial risk insurance covers issues such as insolvency and failure to pay, whereas political risk insurance more covers the actions of the government, for example import and export restrictions.
Credit insurance and export credit insurance are usually limited to commercial companies who have a lot of buying from and selling to other businesses. Credit insurance gives your business the opportunity to increase sales and therefore expand, gaining more clients and ultimately becoming more profitable. This is due to being able to increase credit for your customers and being able to confidently open new credit accounts. The opportunity is also available for the business to grow abroad and become more competitive – always an advantage in our ever competitive world.
Different business needs require different credit insurance policies. Euler Hermes UK are specialists in credit management and will be able to advise on which policy is best to suit individual companies, from small businesses to large, multinational companies. Euler Hermes investigates the clients of their own clients and their financial positions to ensure that the business they are representing are getting the best customers.
In a world of risks, good credit management and insurance is vital in helping a business grow and negate the risks that come with unreliable payees. Euler Hermes offer tailor made packages to suit the size of your business and the trade you’re in, even businesses dealing in e-commerce. They’ll be able to find insurance that is just right for you.
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