Delivering credit insurance for manufacturing

Why credit insurance is important in manufacturing

As a manufacturing business you’re in the middle of a suppliers’ and buyers’ network.

That puts you at varied risk: from the companies who provide your raw materials and equipment, and from those who buy your products.

The bottom line is this: if customers fail to pay for what you make and sell, you can’t afford to purchase raw materials and equipment, or pay your workforce. What’s more, the true cost of bad debt can be much greater than the cash amount you lose. If your average net profit margin is 5%, you’d have to generate £200,000 worth of extra business to replace a £10,000 unpaid invoice.

Take Control

Choose a bespoke credit insurance policy from Coface and you’re back in control of your trading risk. If a customer becomes insolvent or defaults for any reason, you can claim for the loss and keep your cash flow healthy. You also have an opportunity to negotiate more advantageous terms with suppliers.

They’ll see you as a better risk when they know you have credit insurance. You’ll be more attractive to potential investors and lenders too. And our advice can help you set up a more efficient credit management system.