One thing that always keeps business people worried when carrying out their activities is how to deal with cash loss. Cash loss can be in many forms. It does not necessarily mean liquid cash, but also cash from goods sold on credit. Managing the risk of losing your cash, especially avoiding having bad debts written off is quite a task if you have not insured your business against such risks. One of the ways of dealing with financial loss is by taking the right insurance such as risk insurance by Niche Trade Credit. This type of insurance offers you services that ensure you have a better ability in managing your cash flow at your business. That means Niche Trade does not only offer recovery of lost debt, but also other services explained below.
Debt recovery and debt collection
Debt collection and recovery is one of the services that are offered when you take a Risk Insurance by Niche Trade Credit. What the company does is make sure that they charge you for the responsibility of recovering part of your bad debt written off. The insurance company negotiates over your debt and the company may get a percentage that will be enough to pay the business owner the agreed amount and also retain their portion.
Take a debtors health check
This service does not directly mean as it is written. No. It is a way of understanding the person you are about to give out a debt to. Risk Insurance by Niche Trade Credit will ensure that you can understand the potential of the customer to pay back, the customers’ financial gain and even the history of the customer when it comes to paying back debts. This is usually called credit worthiness of a customer. This helps you in determining the amount you can give your customer and also the period or duration of paying back.
Another service that niche trade credit insurance offers to you as a business person is covering your exports. This is more beneficial to the business people who deal in exports. You may export your goods just for them to get lost or stolen. Since you had come into some agreement, you are able to get your goods paid back or even recovered.
Mediation between you and the debtor
Credit insurance companies are also mediators between the debtor and the creditor. They ensure that terms which both parties agree on are met. The best thing is that the insurance company lowers the total amount to be paid and also makes sure that the creditor receives part of the debt even if it is not the whole sum. Therefore the company mediates for easier payment terms.
Taking a risk insurance cover policy like the one offered at Niche Credit insurance leaves you happy and comfortable when running your business. You not only gain confidence, but also get a better negotiation platform with people who really get hard to pay back debts. As business persons, risk insurance policy is a must.