Determine why you should involve credit risk insurance…

Claire Swift | February 11, 2016 | 0

Before you go to the market for quotes, you should identify what your interest in credit insurance is, and how it can benefit your business enterprise. As a custom tailored financial tool, this coverage comes with many benefits despite the misconceptions about it. For instance, in Australia, reliable companies for credit insurance such as credit insurance by niche trade credit exist to help business people on bad credit related issues.

In addition, credit insurance is designed to protect you from unexpected losses due to insolvency or past due default on the part of your insured customers. Therefore, it is advisable to involve reliable experts who specialize in this coverage, to conduct credit evaluation on the accounts you wish to insure. They can approve accounts for specific credit limit based on their request, and the result from their research. Here are some reasons why you should go for credit insurance for your business.

Unexpected loss protection

In many companies and industries, experts suggest that approximately 20% of accounts represent about 80% of the company’s revenue. In some cases, the concentration of credit exposure among key customers can be greater. Therefore, if you consider your receivables as a concentration of all your cost and profit, then you can create them based on nothing but customers’ promise to pay.

This shows a tremendous amount of risk facing your business. Even with customers you trust, the risk of unexpected default may persist. Therefore, reliable experts for credit insurance by niche trade credit suggest that you should use credit insurance as a great tool to remove this catastrophic risk from your business.

Safe sales expansion

Many times, your customers would want to get more credit than you are comfortable giving them. Similarly, some of your new customers with whom you are not familiar with may seek meaningful amount of credit from you. While investing in professional credit practice to review these requests and limit your sales due to concern over the risk, credit insurance can be an ideal answer.

Many companies today use credit insurance to expand their existing credit limits, without putting themselves at additional risk. It also helps in covering open credit sales to new accounts, where you might have limited sales history and information. Involving a reliable credit insurance agency such as credit insurance by niche trade credit, can not only allow you recapture the premium, but also help you drop additional profit to your bottom line.

Credit decision support

As noted earlier, the underwriter of your credit insurance policy should research, approve, and monitor the accounts you want to insure appropriately. Involving a reliable financial analyst to do this work for you as part of your credit risk insurance program, can add a lot of expertise to your credit practice. This can allow you to focus your internal resources to cash flow management and collections work. Therefore, having the carrier watching your covered accounts and helping you evaluate credit limits on new risks can be a great advantage to the program.

For more information on reliable experts that offer credit insurance services, visit

Discover 5 financial mistakes people make

Claire Swift | February 10, 2016 | 0

Are you a hard worker with an excellent career, diligent in all aspects, but wondering why you have not yet made it financially?  In most cases, the problem is how you act, think and feel about your finances. Making right choices with your finances can make a difference.  You may be making some mistakes that most people make when it comes to handling their finances. Free financial advice can help you soar high in your finances by avoiding the mistakes below.

Frivolous or excessive spending

You can lose a great fortune by spending a single dollar at a time. When spending few dollars on luxury, it may seem like just a small amount. However, if you calculated the amount you’ve spent by the end of the week, you realize that you’ve spent more than you would imagine.  The money you spend on small things here and there could be spent doing other important things.  If you are facing financial constraints, you need to avoid this mistake. One dollar spent in the right way can make a huge difference in your financial life.

Constant payments

You need to know if you really need all these items that you keep paying each month, every year. For instance, things such as subscription video games or radio, cable television, pagers and cell phones can make you keep making unceasing payments. If you are tired of financial constraints, live a leaner lifestyle that enables you to spend less and save more. It also saves you financial hardships.

Living on debts

Today, it is normal to use a credit card to buy most of the essentials.  Despite the trend, you do not have to be part of the consumers willing to pay high interest on groceries, gasoline, and other items bought via a credit card. Apart from paying high amount whenever you buy through your credit card, buying on credit increases your appetite to spend.

Buying a new auto

Many cars are on sale every year. However, very few people manage to purchase these cars in cash. If you cannot pay for your car in cash, you are probably not able to afford the car.  Experts may tell you that borrowing to purchase a car means that you pay interest on an asset that is depreciating, thus you end up paying more than the value of the car.

Buying a very large house

When buying your house, it is not always advisable to go for a very bigger house, unless your family is very large. Choosing a very big house will require you to pay high taxes, and high maintenance and utilities cost.  Such cost adds into your monthly payments.

You may be wallowing in debts due to poor financial planning. While some people ignore the importance of proper financial planning, others find it unaffordable. The good news is that free financial advice is here to help. The advice can help you know the mistakes you are making as far as your finances are concerned, and how to avoid such mistakes.   It is not too late. You can still turn around your finances by learning from trusted free financial advice. Visit Dan Hadley Adelaide



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