First of all, you make sure you have a credit limit on your customer by one of two ways:

1 – by applying to the insurer for the amount of cover you need or
2 – by setting your own Discretionary Credit Limit by using your previous trading experience or a credit report from an approved status agency, up to an agreed, pre-determined amount

Secondly, if your customer has not paid you by pre-determined date (usually 30-60 days past due date) you will be required to let the insurer know and submit a claim for the outstanding amount.

If your customer becomes insolvent or enters into administration or similar event, you can submit a claim immediately for the outstanding amount