With all forecasts pointing towards an economic slowdown both in the UK and worldwide, it is a good time for companies to look at ways in which they can create some certainty over their cash flow.

It is always difficult when a customer who has been extended lines of credit ceases trading, but in the current economic climate this is unfortunately all the more likely.

Prudent businesses should therefore be thinking about reviewing their cover, or putting cover in place, for these unforeseen events and credit insurance is a good way of protecting a company against just such an unfortunate occurrence.

The good news is that credit insurance is still affordable for many businesses, but insurers are becoming increasingly fastidious about the organisations that they will cover. So businesses would be wise to review their options sooner rather than later as if the economic conditions continue to deteriorate, this is an insurance that will become harder and more costly to secure.

Businesses that already have credit insurance should use this time to review the policies that they already have in place and explore securing longer-term cover, possibly over two years, in order to help to keep premiums low.

Regardless of the types of organisations that you do business with, it is wise to put cover in place long before there are warning signs over the health of any of your creditors. By the time potential problems come to light it will almost certainly be too late as insurers will in all likelihood have stopped extending cover for businesses identified as being at risk.