How Credit Insurance Will Make Your Business More Profitable

Whenever you apply for any type of credit you make major or smaller purchases every time. In case of everything like you are buying a car or a house, or some appliances or electronics goods you’ll use some type of credit. Every time you use a form of loan not only that but also you’ll be asked to buy some kind of insurance for your credit. But before buying any kind of insurance you should know what you are buying.

What is Credit insurance

Credit insurance is such kind of insurance which made on a organization like Afia Insurance company in favour of a lender and it is intended to pay off a loan if the insured dies or is not able to pay any more payments. There are various types of credit insurance Dubai, the typical form includes credit life, credit disability, credit property insurance and involuntary unemployment. Usually all these coverage come all together with some credit insurance.  You may get value some of them and some of them you may not. You can choose for which one of them you want to pay. But there is a one small exception i.e. credit disability and life coverage cannot be sold separately.

Credit insurance helps you sell more

If you want to make more sales to your existing customers or to start selling to new customers? So what’s stopping you?

You know that customer have been good but you don’t know if they are able to handle bigger credit lines or not.

With new customers you can do your research, meet with them, discuss your plans, check out their finantial condition, take trade referances to minimize the risk.

You could get credit insurance Dubai from Afia Insurance provider and pass on your credit assessment to the people who are experts in that field. If you follow this type of approach you can expand your business. But you have to keep it in your mind that if things do go wrong your credit insurer will put their money where their mouth is and also replace maximum percentage from your working capital.

credit insurance cuts your costs


A customer fails leaving you with a bad debt of £20,000. You are working on 10% edges; whimsical maybe however we are keeping the numbers straightforward. That £20,000 has come straight of your main concern and you have to make a further £200,000 of offers all paid for and all at 10% edges just to cover your position. In the event that you are credit guaranteed your misfortune would be a unimportant £2,000 abandoning you requiring only £20,000 of offers to recover your misfortunes.

The sales can just from two sources new and existing customers. Inquire about discloses to us that it requires ten times more push to locate another client as it does to keep a current customer. When you have a terrible obligation does that arrive in a desperate predicament line as well as you need to supplant that client too.