Businesses having trouble getting paid after supplying the Government and corporate organisations now have a way out.
Through the UAP Old Mutual Trade Credit Insurance, businesses will be able to reduce the risk of bad debts that could destabilise their operations.
“Trade Credit Insurance will enable businesses of all sizes - ranging from SMEs (small and medium-sized enterprises) to multi-national corporates - across a wide range of trade sectors to grow their businesses, capitalise on trade opportunities and protect their bottom line,” said UAP Old Mutual Group Managing Director for General Insurance James Wambugu yesterday.
The scheme provides UAP Old Mutual customers across East and West Africa with access through Credit Guarantee Insurance Corporation (CGIC) of South Africa to Trade Credit Insurance, which protects businesses from the risk of non-payment of invoices by commercial clients.
The national government has a history of huge pending bills while counties are notorious for late payments, which usually leads to businesses, especially SMEs, closing down.
Lately, large corporates, especially in the retail sector, have also borne the brunt of late payments for years, forcing them to turn to expensive loans or close shop altogether.