Insure the Inflow with TCI
Willis Trade Credit expert Damion Walker on insuring your accounts receivable.
Trade Credit Insurance provides indemnification for the non-payment of trade debts. Policies can be tailored according to a clients' individual requirements, embracing not only insolvency risk on goods delivered, but also pre-delivery costs, the non-honouring of Letters of Credit, or non-delivery of pre-paid goods.
With Trade Credit Insurance in place, companies can generally extend more credit to customers whilst reducing the risk of non-payment, thereby enabling sales growth without a corresponding increase in risk. Insurance can also enable a company to secure more favourable financing terms, as insured accounts receivable may be used as collateral.
We work with companies to ensure best practice credit procedures are in place, enhanced via third party risk information. This in turn allows for an improvement in cover, with access to more efficient and competitively priced insurance structures.
The combination of robust credit management policies and procedures with properly structured Trade Credit Insurance protection can lead to higher profit margins, an enhanced balance sheet and increased shareholder value.
Our team has substantial experience in structuring, placement and servicing of domestic and International Trade Credit Insurance programmes for companies covering a broad spectrum of industries. As well as arranging Trade Credit Insurance on selected counterparties, we can also set up and/or manage world-wide centrally negotiated credit risk programmes.
We have a track record of developing innovative structures, ranging from the use of special captive insurance companies to deal with centrally-funded deductibles, through to bespoke structures for specific contracts or situations.