to do business BY Andrew Share, commercial director, Coface UK
If business confidence was a balloon, it’d be visibly deflating amid the current atmosphere of economic uncertainty
rom the chaos surrounding Brexit to stagnating global growth, it’s no surprise businesses are feeling pessimistic. According to the Office for National Statistics’ latest figures, business investment fell by 1.1% in the third quarter of 2018 – the third consecutive quarter-onquarter decline. Other signs that show companies’ appetite for risk is shrinking include refusals to offer credit terms to customers in high-risk sectors from fear of bad debt and reluctance to commit to resource-intensive projects. Yet, those that hunker down until the economic weather has settled could find themselves looking back on this period with frustration. While we all know growing a business involves an element of risk, we sometimes forget a safety at all costs mentality can be just as damaging. However, there’s a way for businesses to both protect themselves from the risk of a financial shock and have the confidence to grow. Credit insurance is often wrongly associated with being risk-averse but this is a misconception Coface is working hard to overturn. As a global leader in the field, our role is to facilitate trade and growth for our 50,000 clients. This is partly possible because our policy holders are protected from the impact of a customer’s insolvency or protracted default, which provides peace of mind and the reassurance needed to use sales revenue to pre-order stock and trade on credit terms. Coface also helps clients focus their time and effort on financially healthy customers, given it only takes a few moments to check our database of 80 million companies and learn whether a prospective customer is creditworthy. This supplement will shed further light on how credit insurance works and makes all the difference for dynamic and ambitious businesses, including those in volatile sectors. We hope you find it an interesting read but more importantly, we hope it inspires you to use credit insurance as part of your growth strategy.
COFACE | CREDIT MEANS CREDIT
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