Recent statistics reveal an alarming trend:<\/p>\n\n\n\n
- \n
- 40% of SME assets<\/strong> are tied up in customer loans, making them vulnerable to late payments or defaults.<\/li>\n\n\n\n
- 80% of small businesses<\/strong> report struggles with unpaid debts, which affects their cash flow, limits growth, and heightens operational risks.<\/li>\n\n\n\n
- Nearly 25% of small business failures<\/strong> are attributed to unpaid invoices, as cash-strapped clients delay or forgo payments altogether.<\/li>\n<\/ul>\n\n\n\n
Given these statistics, directors and CFOs must recognise the ripple effects of unpaid debts. <\/p>\n\n\n\n
As cash flow becomes strained, small businesses often delay payments to suppliers, creating a chain reaction that affects entire industries. <\/p>\n\n\n\n
Amid this challenging environment, trade credit insurance (TCI) emerges as a strategic solution to mitigate financial risk.<\/p>\n\n\n\n
- \n
- Measure this impact on your business by using this risk calculator.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Coface-in-article-image-1-1024x536.gif\")
<\/a><\/figure><\/div>\n\n\nUnderstanding trade credit insurance and how it works<\/h2>\n\n\n\n
Trade credit insurance is a specialised insurance policy designed to protect businesses against losses resulting from unpaid trade debts. <\/p>\n\n\n\n
It allows companies to grant payment periods to their customers in South Africa and abroad with confidence. <\/p>\n\n\n\n
TCI also protects your invoices against excessive late payment or defaulting by your customers. <\/p>\n\n\n\n
In short, when you insure your sales in South Africa or abroad, you protect your cash flow, preserve your margins, optimize the management of your business income, and safeguard your growth.<\/p>\n\n\n
\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Coface-in-article-image-2-1024x845.jpg\")
<\/a><\/figure><\/div>\n\n\nHow Credit Insurance works<\/em><\/p>\n\n\n\n
How Coface protects SMEs<\/h2>\n\n\n\n
Coface South Africa<\/a><\/strong> has a trade credit insurance solution that is specifically designed for small and medium-sized enterprises (SMEs).\u00a0<\/p>\n\n\n\n
It helps address the concerns you may have about late payers and defaulters by offering a structured solution to safeguard outstanding invoices. <\/p>\n\n\n\n
- 80% of small businesses<\/strong> report struggles with unpaid debts, which affects their cash flow, limits growth, and heightens operational risks.<\/li>\n\n\n\n