Tysers is an official sponsor of the Insurance Cultural Awareness Network (iCAN), an industry-wide independent network that supports multicultural inclusion across the UK insurance sector.…
UK Businesses Face Uncertainty
It has been a volatile year and uncertainty continues to surround the potential impact of our exit from the EU. However Brexit is resolved it is possible that your business’s customers may find it difficult to trade profitably through the uncertain times that the UK is facing.
Unforeseen insolvency and non-payment is a significant risk to businesses at any time but over the next few years insolvencies are predicted to increase. Only last week reports emerged that Bon Marche had fallen into administration. We lost a few household names in 2018/2019 including Jamie’s Italian, Thomas Cook, Carillion, House of Fraser, Palmer & Harvey and HMV (for a second time). The outlook for a number of sectors such as Construction, Food and Restaurants and High Street Retail is pretty bleak.
However, Trade Credit Insurance can protect your business against the risks of non-payment and insolvency of customers whether in the UK or overseas and it will significantly improve your overall Credit Management. Tysers have a Trade Credit Insurance team who have access to this specialist area and relationships with all the key insurance markets.
Trade Credit Insurance can improve your ability to obtain finance by providing security to lenders against the unforeseen insolvency risk. For most companies about 40% of their assets are made up of debtor receivables and frequently left uninsured. It is worth considering that if you have a 10% margin then it requires a £100,000 worth of new sales just to replace the effects of a £10,000 bad debt.
To help our clients gain a better understanding of how Trade Credit insurance can protect their own businesses liquidity, we have recently published a ‘Trade Credit Fact Sheet’ and some useful ‘Frequently Asked Questions’.
If you have any questions or queries regarding how Trade Credit insurance might help your business then please do not hesitate to contact me. Or to learn more please visit our webpage.
D: +44 (0)20 3037 8397
M: +44 (0)7585 793216