Should you be Insured against Bad Debt?
Have you ever considered taking out specialist credit insurance to help you minimise costs and maximise your protection against bad debt? Your first thought may be that you can’t afford to, however it’s crucial to ask yourself ‘can your business really afford not to?’…especially in light of the current economic climate. And if you do think it’s a good idea…which insurance company do you choose?
One way to find the most suitable insurance cover is to use a broker. STA Credit Corporation is the specialist credit insurance broking division of the world’s largest independent commercial credit management STA International. They work with businesses to find the best credit insurance package that suits the needs and requirements of your company.
Some ‘Credit Insurance’ companies are reluctant to deal directly with businesses, so using a ‘specialist’ credit insurance broker like STA, who will contact the whole credit insurance market on behalf of your company, can be invaluable.
STA will provide an independent professional explanation regarding each specific insurer’s terms. They will assist you in making a decision from an outlined plan of strengths and weaknesses based upon many years of professional experience and your own business needs, rather than just a single insurer only informing you of their strengths.
A number of years ago, leading manufacturer Lister Trade Frames Ltd initially approached the idea with scepticism. Having good credit control and little bad debt history the company was dubious as to what benefits credit insurance could bring. But since receiving the assistance of STA Credit Corporation, Listers has enjoyed remarkable protection, especially over the last six months with the added pressures of the credit crunch having an impact on all businesses.
The process is simple, with STA only requiring you to complete one form, which they assist you with, rather than you having to fill in several lengthy ‘Proposal’ forms from each insurer. This enables STA to recommend and advise on many different types of policy structures. The support doesn’t stop there. STA continue to offer a high level of service on a day to day basis throughout the term of your policy and not just at renewal. Once a credit insurance policy is in place their support continues with independent advice and guidance throughout the policy term regarding all credit management concerns.
Tony Heath, Accounts Manager at Lister Trade Frames, values the assistance of STA, “Our business has benefited and we’ve been protected against any serious financial losses. The assistance we have received has been tailored exactly to our needs, which has maximised our protection. It cost us nothing to sit down and talk through the process with STA and the benefits to the company have been invaluable.”
Taking out credit insurance may seem like an added cost for your business but it’s like all insurance; you never know when you might need it. And in the current economic climate you may just be happy to have made the investment.