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Coronavirus: Financial Risks From Unpaid Debt

Message from R K Henshall & Co Ltd

ADVICE ON TRADE CREDIT INSURANCE.

We are in unchartered waters and the challenge facing businesses and the economy due to Coronavirus is the largest since the Second World War.

The Government have introduced numerous facilities to help and support businesses through these difficult times. Further information can be found at https://www.businesssupport.gov.uk/coronavirus-business-support/

You may be aware of a report published recently by The Corporate Finance Network, a network of accountants serving more than 12,000 small and medium size businesses across the UK.

This report suggested that up to 20% of those companies they have spoken with are facing imminent closure, despite the extensive government support available. Many of you will sell to companies which fit this profile.

Credit Insurance can help our clients transfer the financial risk they face should a customer cease trading and their debt to you go unpaid.

As the UK’s largest credit insurer, Euler Hermes are still offering insurance for new clients which may assist in protecting invoices raised – but as yet unsettled – up to and including the 1st March 2020.

At this moment we are unsure how long Euler Hermes will honour these terms. If you have a need for credit insurance or would like a discussion on its benefits, limitations and cost, then please contact us on 01270 758070.

Full details of Trade Credit Insurance options can be found on the RK Henshall web site. (The Cat is not responsible for external websites).