Credit Insurance

Biscuit

Hi,

Does anybody have any experience with using credit insurance? We've got a few high risk customers with low Creditsafe scores and are a bit slow to pay. Credit insurance has been suggested as a way of protecting against any potential bad debt, but I've no experience of using this type of cover.

The information I have found online is from credit insurers themselves promoting the benefits, but there is very little on the potential downside. Is it correct that the insurer could withdraw cover if the insured customer goes into financial difficulty? Likewise how much admin time is spent working with credit insurers? I've worked with invoice discounting companies before and they were very demanding in terms of management accounts, customer information, frequent audits.

I'd be interested to hear about any experiences good or bad, or things to watch out for or consider.

Thank you