Why does a business need credit insurance?

Credit insurance protects businesses against the risk of a customer finding itself unable to pay for goods and services supplied and potentially your work in progress. It is a dynamic form of insurance, adapting as customer profiles and business needs change.

Benefits of credit insurance

Grow your business and trade with confidence

Credit insurance helps reduce uncertainty when dealing with new prospects, moving into new markets or territories, and extending credit to existing customers. It provides a safety-net against unforeseen losses or a distressed economic period.

Reduce exposure to customer non-payment risk

Credit insurance facilitates access to customer intelligence, that can provide an early warning of potential default. Also allows you to identify high risk customers and reduce exposure or focus credit management attention.

Protect short-term cash flow

Credit insurance replaces money lost through customer non-payment, enabling your business to continue trading normally.

For example, a company with 5% net margins that suffers a £100,000 loss needs to add £2million of new revenue to make up for the lost capital. By purchasing credit insurance, a company can efficiently protect its balance sheet and working capital.

Manage long-term profitability

Combined with existing credit control measures, credit insurance provides consistent Risk Management approach and robust debt collection process, ensuring that your business’s lifeblood is protected.

Protects the bottom line

Growing your customer base involves risk, but credit insurance helps mitigate that exposure while you drive for greater profitability.

Improve access to trade finance

Banks and other lenders are reassured by the protection credit insurance offers, which improves access to finance.

Flexible and adaptable

Credit insurance is flexible and provides cover for different sizes of business in different industry sectors. At Xenia we have specialism in export and different industry sectors.

Competitive Edge

If competitors can’t take the risk of open credit terms, your business will seem more attractive to customers because it can safely do so.

Business agility

The protection and intelligence provided by a credit insurance policy can help your company adapt to market needs more quickly.

You never know what’s around the corner, and even the most trusted customer can find itself in difficulty. Credit insurance safeguards short-term cash flow, encourages longer-term profitability, and supports sustainable business growth.

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Mark Whiteley headshot

Mark Whiteley

Group Sales & Marketing Director

T: +44 (0)7810 837671

E: [email protected]

Mike Lawrence headshot

Mike Lawrence

Head of Sales UK

T: +44 (0)7827 853159

E: [email protected]

Contact us

For more information on how our services can benefit your business, please get in touch. Telephone, email or submit a form.

T: +44 (0)3330 155005

E: [email protected]