Business costs are souring with retailers in particular facing a £7bn increase in their costs throughout 2025, as calculated by the British Retail Consortium (BRC). These rising business costs can be caused by a number of factors, including environmental factors, capacity issues and huge inflation fluctuations. When business costs increase, businesses may need to raise prices to maintain profitability. 

Rising interest rates, which are currently at 5.25% as the government works to control inflation, are also contributing to this financial burden. Borrowers looking to invest in their businesses have been significantly impacted by this, with the majority of them stopping possible progress until interest rates drop. Let’s take a look at how trade credit insurance can help you survive increased business costs.

How to Protect Your Business with Trade Credit Insurance

Businesses can take proactive measures to lower risks in the face of unpredictable inflation rates and the ongoing problem of late payments. Trade credit insurance can be one of the best options for this. Credit conditions that let customers pay for goods or services later are now more likely to be non-paid for because of the cost-of-living crisis.

Trade credit insurance has proven to be a risk-reduction strategy for many businesses, as it provides companies with a buffer against possible monetary losses.

The insurer assumes the risk of non-payment by taking up a portion of the outstanding debt in the unfortunate event that a client is unable to make payments. Businesses benefit from both financial security and peace of mind, which frees them from worrying about late payments and insolvency concerns so they can concentrate on expansion.

Navigating Issues with Cash Flow

The cash flow of businesses is directly impacted by this inflation-driven price increase, which frequently results in late payments and other financial issues. Using proactive financial planning techniques is the key to preventing these cash-flow problems.

It's critical to evaluate your company's operations and pinpoint areas for improvement. Reviewing energy costs and supplier chains, as well as balancing staff levels, are just a few examples of areas where a thorough grasp of business expenditures may assist in identifying opportunities for possible savings. Financial difficulties can be avoided by maintaining cash flow and planning for potential problems.

Should You Use A Broker For Your Trade Credit Insurance? 

Finding the best coverage for your company, whether it be for domestic, export, international, or single account trading, will be made easier if you work with a trade credit insurance broker.

Depending on the kind of commerce, trade credit insurance comes in a wide variety of forms, including international trade credit insurance, disaster coverage, and domestic and export credit insurance. Finding the best coverage for your company can be facilitated by working with a broker.

Conclusion

The current economic climate presents significant challenges for businesses. Rising costs, interest rates, and the risk of late payments can severely impact profitability and even threaten survival. While proactive financial management is crucial, trade credit insurance offers a vital safety net.