Some businesses have a credit management policy that understandably keeps a tight rein on the credit limits allowed for each customer. Adopting a credit insurance policy may result in sales growth, as the insured limits issued can be higher than you expected. The policy will divert you away from customers who are likely to encounter payment issues and focus your sales toward those customers who can pay. One of our clients, a leading manufacturer in its market sector, found that after one year of credit insurance they had achieved good sales growth with both existing and new customers, against the backdrop of a difficult economic cycle. They were given the confidence to increase internal credit limits by the backing of the insurer’s risk underwriter and his knowledge of their sector. The Chief Financial Officer commented “Surprisingly, we’ve been able to increase sales in the current environment by 11%. Credit Insurance has naturally not been the only factor behind such growth but it has definitely played its part.”
“Our reasons for buying credit insurance have always been straightforward; a very large exposure and level of concentration gave us cause for concern and we thought it prudent to transfer this risk to the commercial insurance market.” – Financial Director
Atlas Risk are experienced trade credit insurance brokers based in Manchester, helping our clients to grow safely.