News Article

Cover Late Payment Risks with Trade Credit Insurance

Small businesses should take note of the warnings being issued by the Federation of Small Businesses (FSB) who are suggesting that 440,000 of small firms are likely to be at risk of being unable to trade, because of the UK’s late payment culture.

FSB predicts this number of firms could be forced to cease, just because they are not paid on time and because there is often little or no adherence to 30-day payment practice.

A recent survey showed that 30% of small businesses had experienced a worsening late payment situation over the last three months, threatening their trading viability.

The FSB is campaigning for greater Government support on this, but until any changes can be implemented small businesses need to take their own measures to safeguard their futures and protect themselves from the impacts of cashflow swings.

One way to do that is through the purchase of insurance, specifically Trade Credit Insurance. Trade Credit Insurance is insurance cover for those businesses whose customers do not pay their debts, or who pay later than the set payment terms. It can be bought to cover the entire customer base of a business, or for individual accounts. It is something that businesses of all sizes can purchase, to provide more peace of mind.

With different options available, a business should explore what might suit them best with the help of an experienced insurance broker. If you feel that this type of insurance cover might give your business more trading certainty, please get in touch

Back to our news section.