What is Whole Turnover Trade Credit Insurance?
Whole Turnover Trade Credit Insurance provides comprehensive coverage for a business' entire accounts receivable, covering all of your customers against the risk of non-payment. This policy offers the broadest protection and is suitable for businesses seeking to safeguard their entire client base.
Whole Turnover Trade Credit Insurance is particularly beneficial for businesses with a diverse range of customers, as it offers a basic level of security that aims to cover everyone, and can be more cost-effective and simpler to manage than insuring individual buyers.
Our Whole Turnover Credit Insurance policies provide:
- Real-time buyer credit assessment, allowing you to make informed decisions when trading
- Access to various levels of excess, whilst offering attractive premiums due to spread of risk
Benefits of Whole Turnover Trade Credit Insurance
Enjoy broad protection, perfect for those with wide-ranging client portfolios.
1. Protection Against Bad Debts
Whole Turnover Trade Credit Insurance protects your organisation against the risk of non-payment or bad debts. It provides coverage for your entire portfolio of trade receivables, ensuring that you’re compensated for the losses incurred due to customer insolvency, default, or non-payment.
2. Cash Flow Stability
By mitigating the risk of non-payment, Whole Turnover Trade Credit Insurance may help your business maintain a steady cash flow. Even if customers fail to pay your outstanding invoices, the insurer reimburses you for the unpaid amount, subject to the deductible and insured percentage stated on the policy. This can minimise the impact on cash reserves and ensuring the availability of funds for day-to-day operations.
3. Enhanced Credit Management
Insurers offering Whole Turnover Trade Credit Insurance often conduct credit assessments on your business’ customers. This assessment helps you to evaluate the creditworthiness of your clients, enabling you to make informed decisions about extending credit terms.
4. Business Expansion and Sales Growth
With Whole Turnover Trade Credit Insurance in place, you can confidently extend credit terms to customers, thereby attracting new clients and expanding your customer base. By offering credit facilities, you can enhance your competitiveness, increase sales, and foster stronger relationships with your customers.
5. Risk Transfer
Whole Turnover Trade Credit Insurance enables you to transfer the risk of non-payment to the insurer. Instead of carrying the burden of potential bad debts on your own, you can shift this risk to the insurance company. This transfer of risk allows you to focus on your core operations and growth strategies, knowing that you’re protected from credit-related losses.
6. Improved Financial Stability
By safeguarding your business against bad debts, Whole Turnover Trade Credit Insurance helps protect your financial stability. It can prevent disruptions to cash flow, maintain a healthy balance sheet, and reduce the risk of financial distress. This stability is especially crucial for SMEs that may have limited resources to absorb losses resulting from customer non-payment.
7. Peace of Mind
Having Whole Turnover Trade Credit Insurance provides you with peace of mind, allowing you to trade with confidence, knowing that you’re protected against credit risks.