Charles Darwin is famously misquoted as saying “it is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change”
His general theory could not be more apt though, given that the change being forced upon many is truly once in a generation. We’ve already seen some amazing adaptability by companies affected by the unprecedented change that Coronavirus has brought upon the vast majority of businesses both locally and abroad.
Restaurants and coffee shops have overnight, converted their operations as pop up stores, selling everything from toilet paper and cleaning goods to raw goods and coffee to make up for the stock shortages in grocery aisles and the lack of footfall in their own shops.
Manufacturers have stepped up to retool in a valiant attempt to produce more vital equipment in the fight against the virus.
Forbes recently noted that Fashion houses, such as Zara, are using their factories and distribution networks to manufacture masks and gowns for hospitals. Formula 1 teams are preparing to team up and build ventilators, alongside others like Dyson. Brewdog, one of the UK’s best-known craft beer producers launched BrewGel to improve on the shortage of alcohol-based hand sanitiser, as are many others.
“By failing to prepare, you are preparing to fail” Benjamin Franklin
We’ve experienced, first hand, the reluctance to digitise elements of the insurance supply chain and we continue to make advances by championing the benefits of making cover more accessible for businesses of all sizes. Those companies that have adopted digital solutions and remote working (where possible) are coping far better than more analogue operations.
However, not all businesses are in a position to adapt as dramatically. The shutdown imposed on them and those in their supply chains could cause major disruption or even be the death knell. Credit Insurance is a key way to mitigate risk to cashflow and almost as importantly provide insight into counterparty risks as other businesses come under strain too.
The Bank of England recently cut interest rates to an all-time low and injected hundreds of billions of pounds into the economy to simulate lending. Credit Insurance is a key form of cover for most providers of Invoice Finance, to de-risk both you, as a business, and the lender.
For as little as 0.25 pence to the pound cover is usually available for 90% of cashflow.
Whilst there are many other challenges facing businesses of all shapes and sizes, taking out invoice insurance is a simple step to a safer and more secure business. Most importantly securing the lifeblood of your business, cashflow.
We’d be delighted if you get an invoice insurance quote by clicking the link below. It’s a simple process and won’t take long.
Nic Gidaracos