Stephen Mallam is the accountant at one of the UK’s leading providers of thermal insulation to the building services industry. Working in the construction industry, he values the peace of mind that credit information provides, however he recommends it to all sectors.
“In the current economic climate it’s a very sensible thing to do. I would expect that anyone dealing in credit could have problems at the moment. It’s a wise thing to consider for any business, particularly as it gives you background information on any of your clients.”
The Group’s Credit Insurance policy is managed by CBF, which allows Stephen to focus on other areas of financial planning. It also supports him in the decision making process: “As part of this service we have the opportunity to gain insight into potential customers, which means we’ve got our finger on the pulse of the construction industry. We won’t just check on the company we deal with, we’ll also look at the people they’re working for as well.
He continued: “If we go direct to the insurance company and ask for a credit limit of £20,000 on a new customer for example, and they refuse, we can then go to CBF to find out more information about the company, such as their trading and credit history, and look for information which may help to change the mind of the insurer”.
Another key benefit of CBF’s insurance expertise is the specific nature of the insurance products and services they provide. Stephen commented: “I’d had experience with factoring, but it’s not very relevant to the construction industry and it’s relatively expensive. Credit Insurance is much more appropriate for us, and the protection offered by the policy which CBF organised for us is ideally suited to our needs.
He added: “CBF ask the questions that we wouldn’t know to ask, or wouldn’t want to ask the insurer directly. It’s also easier to develop more of a personal relationship with CBF as we feel we can ask them anything. They’ve done a really good job for us.”