credit protection

Irritated the bank is forcing you to take their credit protection?

When providing finance some banks may insist you include their credit protection. Do you feel they exert too much control over your business? Obtaining a separate policy from an insurance company can result in increased credit limits, thereby improving the levels of finance available. It can also avoid the possible conflicts of interest that arise from an invoice discounter financing invoices set against credit limits set by the invoice discounter.  Having ‘all your eggs in one basket’ is seldom in the interests of the customer. Leave lending money to the banks and assessing and taking risk to the insurers.

Example:

Our client had a non-recourse finance facility and found that the credit limits on their largest customers were restrictive, and they couldn’t draw down finance on the export element of their ledger, hampering the company’s growth. Despite looking more expensive ‘on paper’ the credit insurance solution solved both these issues.

“Separating the credit insurance from the banking facility enabled me to judge each on its merits and provided greater flexibility with regard to choice of provider. In addition, the innovation from the insurer which provides additional cover where required, has provided an immense boost to the sales performance.” – Managing Director

bad debt
credit limit exposures
nervous about exporting
terms of payment
credit protection

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