Credit where it's due

If you answer yes to any of the following questions, we may be able to help you.

  • Have any of your customers ever been become insolvent?
  • Have you ever experienced a bad debt?
  • Do you regularly sell to new customers or markets?
  • Do you need help assessing the financial status of your customers?
  • Do you need to improve the cash flow of your business?
  • Do you need to secure improved bank funding?
  • Have you ever lost an order due to not offering open credit?
  • Can you make better use of a bad debt reserve?

How can we help?

Trade credit insurance can literally save the life of a company, providing 80% - 100% cover against non payment of commercial debts due to customer insolvency or various political risks.  The company chooses whether to insure its export ledger, UK ledger, top accounts, selected markets/buyers or any combination of these.

Benefits include:

Early Warning

Insurers have their own sources of confidential buyer information, which can help in reducing exposure to high risk businesses or avoiding it completely.  Policyholders therefore benefit from real-time analysis of their customers' financial status.

Secure Expansion

Trade credit insurance can help sales by indentifying secure customers and providing protection where companies expand into new markets, encountering unfamiliar risks.

Financial Access

Trade debtors typically represent up to 35% of a company's total assets.  Protecting the debtor book gives financiers additional security and often enables them to increase their valuation of a business for lending purposes.

Credit Control

Trade credit insurance policies generally form an integral part of a company's credit risk management procedures.  The policy requirements help to reinforce the disciplines within the credit control function without dictation to it.

 

Trade Credit Insurance in Action

Example One

A glazing company was hit by a number of bad debts, which had a potentially catastrophic impact on their cash flow.  Fortunately, they had credit insurance and were able to claim under it.  The company's finance director noted that without credit insurance, the company would not have been able to replace its working capital as quickly as it did following a number of insolvency losses it suffered in 2006.  Credit Insurance allowed the company's funders to remain confident of its business plan.

Example Two

Following a management buy out in the automotive sector, the client was asked to secure their sales ledger in order to set up a revised funding deal, due to funding pressures experienced during the current 'credit crunch'.  The broker quickly sourced a tailored credit insurance policy, satisfying the bank's needs and securing the new venture further funding.

For more information about this insurance, please contact us.

 

 

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