The internet, improved transport links, and more communication options have meant that international trade is more accessible and easier than ever before. However, dealing with international companies is not always easy. Language and cultural barriers can pose problems when working with companies in other countries, as can a lack of information about who you’re dealing with.
Credit protection insurance is important for businesses of all sizes, particularly during periods of financial instability. However, what many businesses don’t realise is that trade credit insurance can also protect your business when you are trading internationally. International trade is generally more of a gamble than working solely within the domestic market because you may not be sure of the overall financial situation in your customer’s country of origin, which can have a direct impact on their ability to pay you on time.
Timely payments are already a problem within the UK market, with a culture of late payments having almost become the norm. It is important to know whether this is also a problem within the country you’re trading with, as well as understanding the individual financial position of your customers. Credit insurance companies can provide you with credit reports for your domestic and international customers, so that you can start or continue trading with a clear picture of what may lie ahead.
Credit insurance not only helps to protect you before you start trading, but while trading as well. If a customer, anywhere in the world, fails to pay up, the insurance company will step in and cover or recover the payment for you.
