You may often hear Brokers and Insurers say that a credit insurance policy provides many additional benefits to a business other than just protection against bad debts. We thought it would be useful to give an example of one of these benefits, namely the benefit of access to up to date information that’s not usually in the public domain.
Our client is a medium sized wholesale supplier of fashion accessories, supplying goods to mostly retail buyers from small independents to well known high street names. Like many businesses, they have limited resources to carry out detailed and ongoing analyses of potential and existing buyers so having access to this information from other sources is invaluable. This is particularly important at times such as these where the difficulties the retail sector is currently facing are well documented and when the fortunes of a company can change very quickly.
In particular, this client was looking to expand sales including exports, in part to make up for potential slower sales in the UK retail sector. In a recent meeting with Broker Stuart Smith and Risk Underwriter Stephanie Green from their Insurer, AIG, the client was able to obtain in depth information on both existing and potential customers to assist them in not just prioritising their sales effort towards the more creditworthy prospects, but also to manage their existing customers more efficiently.
The advantage of having a credit insurance policy with AIG Trade Credit is that their Account Managers are also the Underwriters who engage directly with the buyers whose risk they are underwriting. This shortens the lines of communication which is an advantage especially when conveying non-financial information e.g. business strategies and plans. Although some information such as management accounts may have been provided to AIG in confidence, the information that is available for feedback is typically far more detailed and current than a status report.
For this particular client, being able to discuss their buyers in detail with the underwriter who had met with them gave them invaluable insight beyond just a generic opinion, which enabled fully informed credit management and marketing decisions to be made.
Prior to the meeting they gave Steph the names of some key existing and target buyers and Steph was then able to research and then discuss these buyers in detail. This informative, direct and tailored feedback gave the client new information and insight which allowed them to make optimum use of their credit and sales resources.
This invaluable support for business growth is just one of the many benefits afforded by a trade credit insurance policy aside from the swift replacement of working capital should a customer have difficulties in paying a debt. For more information of the benefits of credit insurance, read more here or contact us.