In today’s volatile economic climate, entities are constantly faced with the threat of financial loss caused by the default of debtors. Due to the level of expertise that Exchange Capital can provide from an actuarial standpoint, we are able to analyse the risk faced by our clients debtor’s book. Once we have determined the levels of risk you face as well as your entities specific requirements in managing that risk, Exchange Capital will provide competitive quotes from insurance companies to determine the most appropriate as well as cost effective cover.
We work hand in hand with the largest credit insurance providers in the country to ensure our clients are equipped with cover that suits their needs.
Why Credit Insurance?
1. Credit Insurance provides protection against the risk of customer insolvency and default. This is the most important aspect of Credit Insurance. Knowing that your cash flow is protected in the event of default provides great security in terms of managing your cash flows and future orders of inventory.
2. Credit Insurance enhances customer relationships. Your credit insurance provider will be analysing the financial situation of your customers and potential customers. This will enable you to be fully informed when making decisions such as increasing customer credit limits.
3. Credit Insurance improves your banking relationships and is a great way to ensure access to finance. In most cases, banks do not have a large appetite for risk. Having a Credit Insurance policy in place will improve the rates as well as size of funding you will have access to.
4. Credit Insurance will assist in sales growth. Due to the reduced time spent on your credit management process, you will benefit from efficient administrative costs as well as the maximisation of recovery from unpaid debts. This translates to additional time being made available to focus on sales growth and new business opportunities.
Should you be interested in protecting your entity from the risk of defaulting debtors, be sure to contact us to explore your various options in managing that risk.