{"id":78848,"date":"2025-10-16T17:19:11","date_gmt":"2025-10-16T17:19:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/78848\/"},"modified":"2025-10-16T17:19:11","modified_gmt":"2025-10-16T17:19:11","slug":"leveraging-trade-credit-insurance-for-growth-and-stability","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/78848\/","title":{"rendered":"Leveraging Trade Credit Insurance for Growth and Stability"},"content":{"rendered":"

Marsh\u2019s\u00a0Trade Credit Report 2025<\/a>\u00a0discusses the UK\u2019s trade credit landscape in detail.<\/p>\n

Why credit insurance adoption is relatively low in professional services<\/p>\n

Despite many businesses increasingly exposing themselves to greater risk than they are comfortable with to drive growth, not all opt for trade credit insurance. Marsh research found that only 62% of professional services firms hold trade credit insurance. This adoption rate is notably lower than in other sectors, with 80% of manufacturing firms, 70% of life science firms, and 66% of technology firms buying coverage.<\/p>\n

Two key factors contribute to the relatively low uptake of trade credit cover among professional services companies.<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Limited awareness of trade credit insurance:\u00a0Our survey revealed that 44% of professional services firms are only somewhat familiar with credit insurance and its benefits. Trade credit insurance remains an overlooked asset within the sector, with many businesses not prioritising this coverage as part of their growth strategy.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Funding facilities are prioritised over insurance:\u00a0Many professional services companies focus on sourcing funding facilities \u2014 the loans obtained by using trade debtors (outstanding customer invoices) as collateral \u2014 instead of insurance. Essentially, businesses borrow money based on the value of the payments they expect to receive from their clients. This allows them to access cash quickly without waiting for customers to pay. For many professional service companies that use trade debtors, these facilities represent the largest asset on their balance sheets.<\/p>\n

How professional services firms can benefit from a trade credit policy<\/p>\n

Trade credit insurance is delivering positive business outcomes across multiple industries in the UK, and the professional services and business sector stands to benefit in the same way. The benefits of trade credit insurance for professional services companies include:<\/p>\n

Supports business growth:\u00a0Trade credit insurance enables professional service firms to extend credit terms without fearing catastrophic losses, thereby facilitating growth and expansion. It provides a cushion against widespread payment failures, helping to maintain stability in uncertain times.<\/p>\n

Covers debt collection costs:\u00a0Many trade credit insurance policies include coverage for debt collection expenses. In 70% of debt collection cases within professional services firms, companies rely on third parties to manage the process, which involves chasing late payments, negotiating repayment plans, and escalating legal action if necessary.<\/p>\n

This reliance is significantly higher than in other sectors, such as manufacturing (52%), construction (58%), and food and beverage (46%). The high dependence on external agencies increases the financial risk and burden, especially as collection costs rise. For the companies surveyed by Marsh,\u00a0debt collection costs average \u00a3368,400 per year,<\/a>\u00a0with nearly all finance directors reporting that these costs are increasing.<\/p>\n

Provides creditworthiness assessments of potential clients:\u00a0Insurers provide creditworthiness evaluations of prospective clients, which, together with a firm\u2019s own risk assessment checks, reduce the chance of entering into contracts with high-risk customers.<\/p>\n

Facilitates negotiations with funding providers:\u00a0The cover also supports negotiations with funding providers, helping to strengthen essential working capital requirements.<\/p>\n

Trade credit insurance: Key to resilience in professional and business services<\/p>\n

Professional services companies can maintain robust and up-to-date credit management procedures regardless of whether they have credit insurance. However, our research shows that\u00a0leaders view trade credit insurance as a vital enabler for stability and growth.<\/a>\u00a0Companies without trade credit insurance may be missing out on significant benefits, as those with coverage in our survey reported fewer negative impacts from economic challenges.<\/p>\n

In today\u2019s risk environment, an increasing number of insurers offer tailored trade credit policies, particularly for larger businesses. Non-payment insurance provides greater confidence to pursue opportunities in uncertain times, making it a valuable consideration for professional services firms.<\/p>\n

For more information on insuring your firm against non-payment risk, please contact your Marsh advisor.<\/p>\n","protected":false},"excerpt":{"rendered":"Marsh\u2019s\u00a0Trade Credit Report 2025\u00a0discusses the UK\u2019s trade credit landscape in detail. Why credit insurance adoption is relatively low…\n","protected":false},"author":2,"featured_media":78849,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[127,114,7727,85,46,55336,55337,55338,1299],"class_list":["post-78848","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-article","tag-business","tag-global","tag-il","tag-israel","tag-private-client-services","tag-professional-services","tag-trade-credit","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/78848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=78848"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/78848\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/78849"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=78848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=78848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=78848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}