Credit Insurance

What is credit insurance?

Credit insurance protects a business’ cash flow from the problems often associated with trading on credit by safeguarding your company against debtor non-payment through insolvency or protracted default (i.e. non-payment after an extended period).

What are the benefits of credit insurance?

• Should a debtor fall insolvent or take longer than the agreed credit period to pay an invoice, your business is protected.
• There is a range of credit insurance policies that can be tailored to a business’ individual requirements.
• Credit insurance can be incorporated into a non-recourse invoice finance facility as debtor protection or be provided as a standalone product.
• Credit insurance can cover your entire debtor book or just select customers.
• Credit insurance can protect against the risk of overseas trade.

What credit insurance policies are available to my business?

There is a range of credit insurance policies available to provide bad debt protection and maintain your business’ working capital, depending on your business’ needs.

While whole turnover credit insurance covers your entire debtor book to provide the maximum level of business credit insurance available, selective cover insurance allows you to select which debtors you wish to be insured against to help you trade with customers with an adverse credit history, or to protect your business against a high-value invoice.

Additionally, international cover specialises in providing credit protection from credit risks associated with trading abroad, which sometimes include political risk insurance.

Another option is performance bonds insurance, providing assurances that any contracts will be completed on time in the event any contractor or supplier fails to meet their contractual obligations.

Finally, duty-deferment bonds allow the deferral of HM Customs and Excise duty and VAT that must be paid upon importing goods into the UK.

Which credit insurance policy best suits my business?

With more than 12 years’ experience in identifying tailored credit cover, Hilton-Baird Financial Solutions could introduce the most suited facility to meet your business’ funding requirements and provide one of the most important cash flow protection mechanisms your company could access this year.

To speak to our team about the range of credit insurance policies available to your business, please call 0800 9774833 or email us at info@hiltonbaird.co.uk.