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Maximising Credit Risk Management in Construction:Why Credit Insurance Alone Isn’t Enough
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In construction, where upfront costs are high and payment terms are long, managing credit risk isn’t optional; it’s essential for survival.
Trade credit insurance is a valuable safety net, protecting you from losses if a customer becomes insolvent or defaults.
But here’s the reality: insurance pays you after the damage is done.
To truly protect your cash flow, you need to combine insurance with real-time intelligence and proactive debt recovery, and that’s where Top Service comes in.
Sector Insights
While trade credit claims cover losses, they don’t prevent them.
Recent figures underline the risk:
● In May 2025, UK insolvencies rose 15% year-on-year, with 2,238 filings
● For construction specifically, annual insolvencies hit 4,056 — up 26% compared to
pre-pandemic levels
The Role of Trade Credit Insurance
Credit insurance covers you when customers can’t or won’t pay, giving you financial protection up to your policy limits.
It’s an important backstop — but it has limits:
● Claims can take time to process.
● You’ll likely pay an excess.
● It can impact renewal terms and premiums.
And most importantly, to make a claim, you still need robust due diligence in place. That means thorough credit checks, continuous monitoring, and quick action when a customer’s payment behaviour changes.
Why Standard Credit Information Falls Short
Most credit insurance policyholders rely on their insurer for risk data. But:
● Reports often rely on filed accounts that may be months — even years — out of date.
● They rarely show what’s happening in real time with day-to-day suppliers.
By the time a generic provider updates their rating, your customer could already owe you thousands.
The Top Service Difference
As the UK’s only credit reference agency dedicated to the construction industry, we go beyond static reports:
● Up-to-the-minute trading experiences from thousands of construction suppliers.
● Sector-specific intelligence you can act on immediately.
● Fraud detection tools to uncover hidden risks.
● Real-time monitoring alerts so you know when a customer’s risk profile changes.
This isn’t just about spotting risk — it’s about seeing it early enough to act.#
Debt Recovery Before the Claim
Even with insurance, a direct recovery is often faster and more cost-effective than making a claim:
● You get paid quicker.
● You avoid excess charges.
● You keep your premiums lower.
For slow payers, our debt recovery team moves fast — often securing full payment while preserving customer relationships. If insolvency has already occurred, your insurer can step in, but why wait until it’s too late?
The Two-Layer Defence
● Layer 1: Credit insurance — your safety net.
● Layer 2: Top Service — your early warning and rapid recovery system.
Together, they don’t just protect you after a loss — they help prevent the loss in the first place.
Quick Action Checklist
✔ Use Top Service to monitor all insurance-covered clients.
✔ Take early action on slow payers before a claim is necessary.
✔ Use monitoring insights to adjust cover levels and keep premiums competitive.
Ready to strengthen your credit risk strategy?
Contact Top Service Ltd today to see how our real-time construction sector intelligence works hand-in-hand with your existing cover
