Dec 16 2009
International Credit Control in tough times
To protect your business in tougher times there are a few financials methods worth considering.
Export Credit Insurance :
This type of insurance policy covers your business against the non-payment of debts or bankruptcy of your customers outside your own country.
This is certainly worth considering if you are working with new clients and the sales value impacts your cashflow directly.
Domestic Credit Insurance :
You can also consider this type of insurance policy that covers your business against the non-payment of debts or bankruptcy of your local customers.
Factoring :
Third party finance provided by a factoring house. They buy your trade debts and advance you 90% of your invoice value. You pay a fee off the top line, but get payment immediately.
Invoice Discounting :
This is very similar to factoring. The difference is that your customers generally and not made unaware that you are doing this.
Legal Expense Insurance :
You can take out insurance that will cover your business against the cost of such things as legal advice and debt collecting costs for certain debts.
