Are you protecting your business? - Business Women Scotland

Are you protecting your business?

Fiona Scott

Linda Scott Associates

Address: Burnfield House , Burnfield Road, Giffnock, G46 7TL.

Phone : 0141 637 0222

Email : Fiona@lsa-ltd.co.uk

Website: www.scottcredit.uk

Twitter: @LSALimited

You put in the hours, the blood, sweat and tears. The endless hard graft to build your business but are you doing all you can to protect it?

Credit insurance helps businesses trade and grow by limiting risk. It can provide certainty of payment which helps pave the way for increased trade even in times of economic uncertainty.

With unpaid bills at their highest in the UK since 2009 it has never been more important for businesses to protect themselves. It seems daily that we are bombarded with stories of high-profile insolvencies; such as Jamie Oliver restaurant groups; or challenging times for well known, trusted businesses – for example Thomas Cook. With Brexit looming and the prolonged negotiations all sectors are facing harsh economic challenges.

Many firms are struggling with rising costs, impacted by varied factors such as government intervention like the increases in living wage, the shrinking value of the pound and more cautious spending as consumers tighten their belts in these challenging times.

In short it has never been more important to protect your business from unexpected losses without restricting positive growth.

Many people do not realise Credit insurance exists and if they do many, mistakenly, believe the myth that it is cost prohibitive and too expensive for your average business. In many businesses it actually costs more in administration costs to provide invoices than it does to insure each individual sale under a whole turnover policy. For those who are familiar with Credit insurance an obvious shift has occurred. Where it was once viewed as an extra cost or discretionary spend many directors and business owners now realise the consequences of not covering their balance sheets against non-payment. Their credit insurance policy has become a vital component to the successful existence of their company.

Another common, and unfair, misconception is that credit insurance like many other forms of insurance is simply a once a year policy – put in place and forgotten about until the renewal. This could not be further from the truth. A quality broker will ensure your business gets the most from this product and will enable you to utilise the trade sector specialist advice at your fingertips. These policies are dynamic and constantly evolving. They are a source of ongoing support and knowledge to provide early warning of potential risk due to financial stress of the companies you are selling to. Credit insurance is an economic enabler and is vital to protect your business, never more so than in uncertain times like the present.

It is often believed that insurers can pull cover at any time – leaving all previously covered sales uninsured. Again this is a misconception. All sales/risks up to coverage being withdrawn are protected and therefore claimable under your policy. Pulling cover is an absolute last resort for any insurer and often we work with clients to trade down with these customers before it reaches this point. In the instance that it does this should be regarded as a warning sign. No further sales to this buyer will be covered as due to trade sector knowledge it is believed there is a significantly heighted risk of failure. This information becomes a powerful tool in protecting your business and we work closely with clients to use this knowledge correctly. In the case that a customer of yours many feel cover has been pulled unfairly we, as your broker, would work with them and the insurer – seeking management accounts, cash flow projections etc to provide a clearer picture to the insurers and therefore hopefully get cover reinstated. Enabling further trade with protection.

We are currently seeing over £5million a week being paid by trade credit insurers to help firms across all sectors cope with bad debt. The need to protect sales has never been higher. At LSA we pride ourselves on our ability to over great service to our customers, working closely with them to get the most benefit from their policy and allowing them to trade in confidence.

About LSA Limited.

We are a Scottish, family owned firm specialising in credit insurance and consultancy. We work with customers across all sectors UK wide who sell on credit terms for their goods or services. At the moment we are seeing the current economic challenges reflected in every sector we work in though especially in food/drink, construction, retail and recruitment.

We pride ourselves on offering great, personal service to all our clients. Unlike others in our field every one of our client’s receives visits no matter what their size of turnover. We provide advice and can find the correct credit insurance policy to meet each client’s individual needs. We then provide constant guidance to ensure the full benefits of the policy are felt by our client. We can also provide consultancy on credit control and procedures for businesses we work with.

We are fully regulated by the Financial Conduct Authority and our senior management team includes members of both the Chartered Institute of Credit Management and the Institute of Export. With a wealth of experience between our team we are proud to be held in such high regard in our industry and continue to develop our skill base through ongoing professional development to ensure we maintain our position as industry experts.

We are delighted to be members of Business Women Scotland and pride ourselves that in an industry which is heavily male dominated we have a senior management team that is 75% female. We are passionate about helping businesses grow and love working closely with our clients, finding that getting to truly know each business allows us to offer the most suitable policy and advice.

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