Viking Safeguard XXIV: Brave the Tide – Protecting Your Fortunes – Conquering Credit Risk with Trade Credit Insurance

Hail, Guardians of Prosperity!

In the world of business, there exists a silent adversary—credit risk. Like a thief in the night, it can strip away the rewards of your hard work, threatening cash flow and growth. But as any seasoned Viking knows, the answer to lurking danger is to arm oneself with powerful defenses. Today, we speak of one such defense: trade credit insurance.

The Threat of Credit Risk: Why Your Business Needs Protection

When a key customer fails to pay on time—or worse, not at all—the impact can be immediate and severe. Cash flow suffers, projects falter, and the ability to grow hangs in the balance. In these times, protecting your revenue and securing your trade relationships is no longer a choice but a necessity.

1. Know Your Allies and Assess Creditworthiness

Victory begins with knowing who you can trust. While building partnerships, it is essential to evaluate the financial resilience of each ally. With the right tools and expertise, I can help you analyze your clients’ creditworthiness, ensuring you have the information needed to extend credit wisely and avoid surprises that could imperil your fortunes.

2. Trade Credit Insurance: A Shield Against Loss

Trade credit insurance serves as a mighty shield against the risk of non-payment. It offers coverage for unpaid invoices, ensuring that even if a customer falters, your own business remains steady. With this protection, you can focus on growth with the confidence that your cash flow is secure. As your broker, I’m here to guide you in finding the right policy that aligns with your ambitions, fortifying your trade relationships against any threat.

3. Strengthen Your Position and Expand Safely

With trade credit insurance, you gain more than protection—you gain opportunity. By reducing the risk of extending credit, you can safely pursue partnerships in new markets or with larger clients. Trade credit insurance empowers you to expand without the fear of catastrophic loss, opening doors that were once shrouded in uncertainty.

4. Diversify and Distribute Risk

Relying on one or two major clients places your entire business at their mercy. A wise Viking spreads his risk across many trusted allies. Trade credit insurance allows you to build a diverse client portfolio, with the confidence that non-payment from one will not shake the foundation of your enterprise.

5. Monitor and Adjust: Stay Vigilant Against Economic Shifts

Even the best plans require vigilance. By continuously monitoring economic shifts and the credit health of key partners, we stay ahead of potential pitfalls. I am here to support you in this pursuit, ensuring your strategy remains adaptable and resilient, regardless of market changes.

When to Reach Out for Support on Credit Risk

If credit risk and the possibility of non-payment keep you awake at night, it may be time to consider trade credit insurance as part of your strategy. I stand ready to help you navigate these challenges, fortifying your business with the shields and knowledge needed to weather any financial storm.

May your fortunes be well-guarded, and your path to growth be clear.

Marianne Halvorsen, CPCU, AIS