Sheffield broker recommends local firms to protect themselves with trade credit insurance as economic uncertainty continues

16th June 2016

Sheffield chartered broker IFM Insurance is advising local firms to consider taking out trade credit insurance as sterling drops against international currencies caused by uncertainty over the outcome of the UK's EU referendum.

With the Bank of England recently forecasting lower UK growth amid growing economic turbulence, trade credit insurance helps provide cover and reduce the risk to small businesses if customers that owe them money do not pay their debts or pay them late. Figures released recently by the Association of British Insurers (ABI) show that trade credit insurance continues to represent good value for small businesses, who receive a quarter (25%) of the total value of claims paid, but pay just 15% of the total premium.  Trade credit insurance gives businesses the confidence to extend credit to new customers and improves access to bank funding, often at more competitive rates. Trade credit insurance is for products and services that are due within 12 months.   John Leigh, Director of IFM Insurance said, "With the economic uncertainly gaining momentum in the run up to the EU referendum, now is a good time for local businesses to consider trade credit insurance. This type of insurance protects firms against commercial risks that are beyond their control whilst reducing the financial implications if their customers were to suddenly become insolvent.