Credit Risk insurance

[Ultraviolet]

Hi

Any small business owners have a credit risk policy they could recommend?
I'm look to insure against default with cover of around £40k.
Premiums currently in the £3.5k mark.. was hoping to get away with around 1/2 that amount!

any recommendations gratefully received...

cheers,

UV

[insurance_jon]

who do you use at the minute? Euler Hermes have just given us access to their new product for SME's if you aren't with them already

[Ultraviolet]

Cheers John

no insurance at the moment - this is for work with a new client who I haven't dealt with before.
I had a quote for euler hermes for around £3.5k which is, apparently, their 'minimum'.
Don't suppose you have a link / more details for the SME version?

Regards,
UV

[insurance_jon]

euler have a £3k plus tax (6%) minimum for full spectrum cover.

But if it for an individual client it may well be lower if you want to specify them.

I'll find out for you

[insurance_jon]

turns out that's £5k and the £3k is the SME product.

Doubt you are going to get much lower

[toohangry]

Try Status Credit insurance, as a broker. Lance is great.

[Boarder1]

www.peterhill.co.uk

[RJD223]

Boarder1 said:

www.peterhill.co.uk

Another vote for Peter Hill...

We were looking just to cover one new client for £30k of work. Prices from all over were coming in around the £3k mark.

Peter Hill did our full £1.5m T/O cover for just over £4k so we went down that route.

Hugely cheaper than EH.

HTH!

[Mattt]

Are you sure that's the right link??

On a larger scale, but previous firms have used Coface for overseas risks.

[davepoth]

Might be worth looking at factoring or discounting, where you sell the particular invoices on to another company for a little less than the value of the invoice. They then assume the risk of non-payment.

[toohangry]

davepoth said:

Might be worth looking at factoring or discounting, where you sell the particular invoices on to another company for a little less than the value of the invoice. They then assume the risk of non-payment.

Not really the same as Credit insurance and probably more expensive/ less flexible. Separate CI is the way, factoring or not.

[davepoth]

toohangry said:

davepoth said:

Might be worth looking at factoring or discounting, where you sell the particular invoices on to another company for a little less than the value of the invoice. They then assume the risk of non-payment.

Not really the same as Credit insurance and probably more expensive/ less flexible. Separate CI is the way, factoring or not.

It does rather depend on the customer - and in this case we are talking about only one customer by the looks of it. All I'm saying is it's an option, and it's always a good idea to consider lots of options.

[toohangry]

davepoth said:

toohangry said:

davepoth said:

Might be worth looking at factoring or discounting, where you sell the particular invoices on to another company for a little less than the value of the invoice. They then assume the risk of non-payment.

Not really the same as Credit insurance and probably more expensive/ less flexible. Separate CI is the way, factoring or not.

It does rather depend on the customer - and in this case we are talking about only one customer by the looks of it. All I'm saying is it's an option, and it's always a good idea to consider lots of options.

It's just not a very good option, IMO. Even more so for just one customer as the factors would want to factor the entire ledger if have thought.