When assessing a credit decision, ‘grey’ can be costly.
I'm no fashion guru when it comes to colours; I prefer black and white, rather than grey.
Most trade credit insurance policies allow you to set your own credit limits for customers. You can:
- Rely on your internal credit procedures, or
- Use external reports to justify the credit level if you ever need to make a claim
Here’s the problem: not all credit information is created equal.
Sure, you can buy a basic credit report, glance at the score and colours, and hope it will stand up in the event of a claim. The cheaper option might save a few dollars today. Until a claim gets denied tomorrow.
Or, with the support of NCI, you can obtain an expert-assessed, definitive dollar value limit recommendation that leaves no doubt when it matters most.
Grey vs. black and white
Grey = uncertainty, ambiguity, risk.
Operating in the ‘grey zone’ means guessing, often without all the information, and hoping for the best.
Black and White = clarity, certainty and confidence.
It’s about knowing your decision is justified, documented and backed by experience.
The cost of uncertainty
The comparison below highlights the impact of relying on low-cost reports versus a firm credit limit recommendation. While a quick assessment may appear satisfactory at first glance, important warning signs can be missed.
For example, (based on a $75,000 credit limit) a quick assessment is made, but whilst the colours and score look fine, a line halfway down the report notes a recent collection action, which would mean a discretionary limit cannot be supported.
| Example |
Approach |
Claim Paid |
ROI |
| 1 |
$15 credit report
|
$0 |
$0 |
| 2 |
NCI expert recommendation ($79) |
$67,500 (90% of $75,000 claim) |
854%
|
In credit, certainty isn’t expensive; uncertainty is.
When your insurer asks for justification on a discretionary limit claim, a low-cost report often falls short. But an expert-backed assessment can mean the difference between a denied claim and a $67,500 payout.
The NCI advantage
NCI is the only specialist trade credit insurance broker offering value-added services under one roof. Combining decades of experience, data insight, and claim support to give you confidence when it matters.
We don’t deal with grey. We deliver black-and-white certainty.
See the difference for yourself – a free offer!
Get a complimentary credit assessment and recommendation on three of your customers, no obligation, no grey areas.
Contact us directly at info@nci.com.au or 1800 882 820 to learn how NCI can help bring clarity and certainty to your credit decisions.
About NCI
As Australia’s leading trade credit insurance broker, NCI is uniquely placed to report on the ‘ups and downs’ of the country’s inter-business trading climate. With frequent media reports on the fluctuations of business trade credit factors, NCI is ideally placed to demonstrate the extremes of Australia’s economy.
NCI is a Silver Partner of the Drinks Association.