Tel: 01424 221058 or 07971 996658 Fax: 0845 127 4385
E-mail: Rycroft Associates
DTI figures advise of only 18% of companies failing due to financial reasons, this leaves a surprising 82% of companies failing for "other" reasons and makes spotting potential bad debts very difficult even for an experienced underwriter (even spotting financial problems can be difficult in it's own right largely due to the age of filed accounts), hence the need to seek protection - Credit insurance quickly replaces cash lost as a result of a bad-debt.
Each policy is tailored to clients needs to cover them against the insolvency or default of either a UK or Export debt (or both) with the addition of enhancing cover to include Pre-Credit Risk or Political Risk for sensitive markets.
Most companies have on average 40% of their assets unprotected and take many risks. One bad debt from a key buyer can
take most companies into insolvency themselves.
Credit insurance is a bit like health insurance but for companies, protecting its future and its workforce - consider
this - if your company goes under because a buyer did not pay you then this will mean that all the workforce it employs
will also be out of a job, yet for nothing or virtually nothing
(Facts and Figures) this can be stopped.
Main Index
Credit Insurance home page
Credit Insurance overview
Finance
Credit Insurance Structures
Credit Insurance Costs
Jargon, Myths and History
Contact:-
Telephone Numbers
Fax back contact form
Email contact
Finance quote form
Credit Insurance quote form
Offices
-Allows you to trade in the knowledge that if you don't get paid then there is someone to bail you out and protect your cash flow.
-Allows you to evaluate the risk of taking on new contracts and continually monitors these risks for future problems.
-Allows you to sell more to existing companies by identifying the good risks.
-Can be used as security against lending facilities which may in turn allow you to negotiate a better borrowing rate or extend your current agreement
-Helps improve cash flow.
-Usually more cost effective and simpler than raising Letter of Credit
-Credit insurance provides a definable cost on which you can budget and irons out the peaks where you have bad debts as opposed to the bad debt coming straight off your bottom line.
-Companies that credit insure have less bad debts than those that don't.
-To recuperate a bad debt of £10,000 you will need to make at least another £100,000 in additional sales where your margins are 10%
-Protects your profit, your balance sheet and your companies future.
-Ability to access a range of credit management services, e.g. some insurers offer free credit opinions and a free debt collection service.
-Allows you to reduce your bad debt provision, thus releasing tied up capital.
And the reason most take it out - Allows you to sleep at night.
How it works
You establish a credit limit for the buyer either using your Discretionary Limit or approaching the insurer for a limit (depending on the level of your discretionary limit). after this is granted, you then conduct your trade in the normal manner. If you don't get paid you then pass the debt to the insurer to collect (or if you prefer to arrange your own debt collection, then the insurer is usually agreeable to this - the key is, as long as someone is doing something to collect it). If the debt is collected, great. If the debt is not collected, then the insurer will pay the debt (usually 90%) and either write it off or continue to collect if it is deemed worthwhile. Very few debts are paid out under the heading Default because most debts are either collected or paid out under the heading Insolvency
Why use a specialist broker -
-We are able to go to the whole market, some insurers will only deal through a specialist broker.
-We offer an "UNBIASED" view of each insurer rather than an insurer only informing you of their good points.
-You only need complete one form to get a variety of quotes rather than having to fill in a form for each insurer you approach.
-You can distance yourself from the sales pressure of each insurer and deal with just one contact.
-We can advise on a selection of differing structures which may suit you better - not just wholeturnover
-We can also offer advice and support for the term of the policy not just set-up and renewal
-Our services to you are free of charge.