Debtor Insurance
Generally companies use insurance to protect
their major assets against loss in the event of the unexpected occurring.
Insurance for goods in transit, or plant and machinery against fire and theft
is usually arranged. However one major asset class that often remains uninsured
is the company's debtors. These are the companies that owe you money and thus
provide your company with the cash it needs to survive. Debtor Insurance enables
your company to protect itself against the risk of bad debts resulting from
a sale of goods.
Bad debt can be a result of not properly assessing
the buyer's ability to pay you for goods delivered. The profitability and
the value of your company can be reduced through bad debt and it can reduce
your company's cash generating capability.
Debtor Insurance can assist you in minimising
the risks of non-payment by your debtors due to commercial default or country
risk.
Who should use Debtor Insurance?
Debtor Insurance is suitable for your company
when you are selling on credit terms to buyers located here in Ireland or
world-wide.
What does Debtor Insurance do?
- Debtor Insurance provides protection against
the following risks:
- Insolvency of the buyer.
- Default by your buyer on any amount owing
under contract within 6 months of the due date.
- Non-payments by your buyer as a result of
a country risk event.
Benefits of Debtor Insurance.
- Protection of your company's profit and cash
flow against the risk of bad debts.
- Reduction in your company's bad debt provisions.
- Facilitates the introduction of a quality
credit management control process in your company.
- Supports the expansion of your company's sales
in a prudent manner.
- Independent insurance broker service providing
you with access to the world's leading debtor insurers.
- Access to your debtor insurance company's
credit checking facility, in some cases online.
- Easier access to invoice discounting facilities.
- Tax deductible premium and, subject to credit
approval, insurance premium finance.
Why should you use Debtor Insurance?
By establishing a solid credit risk management
policy you can enable your company to expand their sales and increase their
profitability. Debtor Insurance will ensure that all departments in your company,
from sales to credit control, will focus on the payment of all the company's
credit sales.
Click
here to access the Debtor Insurance Enquiry Form
