The lockdown has led to an economic crisis on a global scale. As a result, the UK government is now coming under increased pressure to continue to ease restrictions and to allow some struggling businesses to re-open their doors. Whilst this is a positive sign, it will also come with its challenges. After weeks with little or no trade, businesses may be financially weaker and have less cash to withstand the impact of an unpaid debt on their balance sheet.
Some businesses will not be in a position to pay for goods upfront and therefore will be looking for suppliers to offer either new or extended credit terms. This will be a worrying time for many suppliers, even if they are receiving orders from customers who they previously traded with prior to lockdown – as they may be asking whether these companies are still in good business. Companies may want to accept additional orders or provide services to new markets but may find customers are now asking for longer credit terms. If a customer fails to pay due to insolvency then the supplier may as a result also fail, leading to a ‘domino effect’. Alternatively, they may receive an order from a new customer who wants the goods/services on credit. How will they manage to check the creditworthiness of the potential customer?
Our new single invoice solution
This is where access to our single invoice credit insurance solution, Nimbla, may help businesses. Nimbla has recently partnered with Gallagher Trade Credit to provide insurance cover on a single invoice basis. It is a fully automated invoice insurance solution from insurance decision and quotation, to invoice payment and claim management.
Through a simple online platform you can obtain a credit opinion on any customer before proceeding to the quote process – and you can purchase cover for invoice(s) up to a maximum of £110k per invoice or £500k per customer. The cover is for insolvency only and lasts for 12 months after the due date of your invoice.
Our new trade credit solution is quick and easy to use, which can provide confidence and at a competitive price. Visit https://www.nimbla.com/ajg to find out more.