Credit insurance
Discussion
We're thinking of signing up for credit insurance for the first time - in the past we've had a certain background level of bad debts which have hurt a little but we've accepted them as being tolerable. For obvious reasons we feel this year there may be more, and so it may be worth taking something out.
So far I like the look of the HSBC (aka Coface) Cover Credit policy - we'd be on their minimum fee of £2,100 per year which sounds a lot better than the £8K we were quoted by someone else (0.8% of £1M turnover).
Anyone got any better recommendations?
(Some of the fine print looks a little interesting - like the way they will only pay 5 months after first being told of a problem - that could be long enough for us to suffer badly if the bad debt were a large one - although presumably not as badly as if we lost it completely!
They also seem to be setting fairly low credit limits for some of our fairly large customers - perhaps that's how they "cheat" - by assigning very low credit limits to our customers as a way of minimising their exposure?
So far I like the look of the HSBC (aka Coface) Cover Credit policy - we'd be on their minimum fee of £2,100 per year which sounds a lot better than the £8K we were quoted by someone else (0.8% of £1M turnover).
Anyone got any better recommendations?
(Some of the fine print looks a little interesting - like the way they will only pay 5 months after first being told of a problem - that could be long enough for us to suffer badly if the bad debt were a large one - although presumably not as badly as if we lost it completely!
They also seem to be setting fairly low credit limits for some of our fairly large customers - perhaps that's how they "cheat" - by assigning very low credit limits to our customers as a way of minimising their exposure?
My company credit insures. This year already we have claimed over double the price of our policy (already expensive) and that is just a buiild up of many medium sized bad debts. Our bigger clients are all safe thus far so I highly recommend it. I honestly would not be able to sleep at night without it.
Policies are difficult to come by this year and expensive, however.
I urge you to go through a credit insurance broker who will go to the whole market and make sure you get paid. They will also know which policies are misleading etc.
I can recommend an excellent one if you are interested. It costs no extra to use a broker, will very likely save you money and will very likely steer you through potentially very costly situations.
Policies are difficult to come by this year and expensive, however.
I urge you to go through a credit insurance broker who will go to the whole market and make sure you get paid. They will also know which policies are misleading etc.
I can recommend an excellent one if you are interested. It costs no extra to use a broker, will very likely save you money and will very likely steer you through potentially very costly situations.
Incidentally we looked into HSBC. It was far too restrictive to be useful and like you, we couldnt get realistic limits on our clients. None of them are good in this respect but HSBC was one of the worst.
£2100 is far too cheap. There is a catch of some sort there unless you are in a significantly low risk industry.
The industry average fee is somewhere around 0.5% of insurable turnover (IIRC) although, as stated, new policies at the moment are attracting quite a premium for obvious reasons.
£2100 is far too cheap. There is a catch of some sort there unless you are in a significantly low risk industry.
The industry average fee is somewhere around 0.5% of insurable turnover (IIRC) although, as stated, new policies at the moment are attracting quite a premium for obvious reasons.
blindswelledrat said:
My company credit insures. This year already we have claimed over double the price of our policy (already expensive) and that is just a buiild up of many medium sized bad debts. Our bigger clients are all safe thus far so I highly recommend it. I honestly would not be able to sleep at night without it.
Policies are difficult to come by this year and expensive, however.
I urge you to go through a credit insurance broker who will go to the whole market and make sure you get paid. They will also know which policies are misleading etc.
I can recommend an excellent one if you are interested. It costs no extra to use a broker, will very likely save you money and will very likely steer you through potentially very costly situations.
Yes, please let me know who you recommend.Policies are difficult to come by this year and expensive, however.
I urge you to go through a credit insurance broker who will go to the whole market and make sure you get paid. They will also know which policies are misleading etc.
I can recommend an excellent one if you are interested. It costs no extra to use a broker, will very likely save you money and will very likely steer you through potentially very costly situations.
zadumbreion said:
blindswelledrat said:
My company credit insures. This year already we have claimed over double the price of our policy (already expensive) and that is just a buiild up of many medium sized bad debts. Our bigger clients are all safe thus far so I highly recommend it. I honestly would not be able to sleep at night without it.
Policies are difficult to come by this year and expensive, however.
I urge you to go through a credit insurance broker who will go to the whole market and make sure you get paid. They will also know which policies are misleading etc.
I can recommend an excellent one if you are interested. It costs no extra to use a broker, will very likely save you money and will very likely steer you through potentially very costly situations.
Yes, please let me know who you recommend.Policies are difficult to come by this year and expensive, however.
I urge you to go through a credit insurance broker who will go to the whole market and make sure you get paid. They will also know which policies are misleading etc.
I can recommend an excellent one if you are interested. It costs no extra to use a broker, will very likely save you money and will very likely steer you through potentially very costly situations.
All suggestions gratefully received!
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