The question is whether you prefer the early warning feature of the traditional ‘cancellable’ credit limit products versus the certainty of cover for a 12-month period with non-cancellable credit limits.
Several of the trade credit insurers can now consider elements of non-cancellable cover, either on a hybrid basis or across the entire customer base. If you are comfortable sharing invoice transaction data with an insurer on a regular basis, then even Discretionary cover can be non-cancellable (and calculated automatically based on your trading experience).
If the idea of non-cancellable cover is attractive, why not gain a health check on your three largest customers? We’ll provide an overview of the credit risk attaching to your 3 biggest customers based on the view of a panel of our insurance partner underwriters. This will deliver valuable insights into credit risk, allowing you to make informed decisions about the level of credit offered to your top customers.
If you would like some help with this issue, then click on the link here and we will assess the risk of your three biggest customer exposures.