Credit insurance provides basic cover for smaller customers. The company may also seek limits from the insurer for larger orders.
The second advantage of this insurance option is a rating on the basis of the company registration number. This allows the company to make an immediate assessment of each new customer's creditworthiness and decide whether doing business is feasible or not, taking account of the divide between the sales team anxious to do new business and the financial department eager to make a profit. A solution is to have a neutral assessment made of a customer or prospect.