đź•’ Article read time: 2 minutes
The new solution to unpaid debts
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Whilst not wanting to point out the obvious, it’s challenging times for independently run road haulage businesses.
A shortage of drivers and increased wages for those that remain, diesel prices hitting a record high, not to mention Brexit causing border delays and increased admin, are all squeezing margins and driving up costs.
In the pursuit of profits and growth, you might be tempted to take more risky business decisions by offering larger orders on credit or orders on credit terms from completely new customers.
UNDERSTANDING THE IMPACT
If that sounds familiar, it’s important to understand the impact a non-paying customer could have.
You would need to invest time and money in chasing a late payer and hire a collections agency if you’re unsuccessful. If they’re unsuccessful you could still be charged a collections fee and would have to write off the debt. If the collections agency were successful you could be looking at a charge of around 12% of the debt for a ‘no collect, no fee’ service.
To put bad debt write-offs fully into perspective, a business that operates on a 2% margin and writes of a £2,000 debt would need to find an additional £100,000 of unbudgeted turnover to make up for the loss.
A NEW SOLUTION
The good news is there is a more commercially viable, less risky, answer to all of this.
Express cover is a revolutionary new type of insurance from Euler Hermes, the global leader in trade credit risk management.
It’s a flexible pay-as-you-go solution that lets you cover individual invoices or individual customers (or a combination of both) against non-payment, with claims settled within 30 days.
With Express Cover you can trade (always get paid) and grow your business with confidence.
With Express Cover you can:
- insure against non-payment or late payment of your business customers;
- insure a single invoices, single customers, or a combination of both;
- receive free debt collection services for insured customers;
- receive payment from us within 30 days of claiming if a customer fails to pay.
Using the online service you get instant answers on cover for customers, helping you to make quick decisions on who to trade with.
*Discover more on Express Cover by clicking here.
Published On: 10/03/2022 16:00:15
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