Preventing £500,000 loss for electrical engineering contractor

The Challenge

An electrical engineering contractor was on the verge of securing their largest contract ever. To ensure their cash flow was protected in case the customer defaulted, they needed credit insurance. However, publicly available information was insufficient for insurers to assess the risk, requiring comprehensive data to obtain the necessary coverage. Without this insurance, the contractor risked losing the lucrative contract or facing significant financial instability.

The Solution

The contractor turned to Compare Credit Insurance, a specialist credit insurance broker Compare Credit Insurance, a specialist credit insurance broker, through a Google search and reached out for assistance. Their brokers conducted a comprehensive market analysis, providing proprietary information to support the insurance request. Atradius agreed to offer the required coverage for the contract and extended high levels of cover across the contractor's entire ledger at a competitive rate.

The Result

With the insurance policy in place, the contractor secured the contract and operated with confidence, knowing their cash flow was safeguarded. Six months into the project, the key buyer encountered financial difficulties and appointed administrators. The contractor successfully filed a claim with Atradius for their outstanding debt, which exceeded £500,000. The support and guidance from CCI’s team, along with the efficiency of Atradius's claims team, ensured the contractor's claim was settled, alleviating cash flow pressures and allowing the business to continue thriving.

Insights on trade credit insurance

Trade credit insurance is a vital tool for businesses, particularly those dealing with large contracts and significant financial exposure. It provides protection against customer defaults, ensuring that businesses can maintain their cash flow and financial stability. Brokers, such as Compare Credit Insurance, play a crucial role in navigating the complexities of the insurance market, leveraging industry expertise and extensive insurer networks to secure optimal coverage for their clients.

Are you ready to safeguard your business from unpaid invoices? Contact Compare Credit Insurance today to explore your options.