When times are hard, it’s time to talk
So are you a broker spending the insurers’ money from the risk transfer account? It will get worse you know.
Perhaps you have 60 days credit and you start off with good intentions, but business is tough and clients don’t pay too quickly, there are bills to pay and perhaps second instalments on acquisitions.
It starts with a few quid here and there, but then it turns into hundreds and then thousands. As long as you have the 60 days credit from your largest insurer you think you will be okay, but after a year or two even that is whittled away.
Eventually you realise you have gone over the 60-day credit and there is no new business to boost the premium income stream.
Now the pressure really starts. Now you are on the slippery slope to ruin.
Take my advice and talk to someone early.
Robin Wood is chairman of RWA Group