Marsh's Trade Credit practice recognises that different organisations have different needs when it comes to managing credit risk. Our team can develop solutions tailored to clients' specific credit exposures and needs.
We believe the role of trade credit insurance is not simply to protect against bad debts - although that's important. We work with our clients and the trade credit insurance market to deliver other benefits too.
Lower borrowing rates and increased funding: Businesses can enhance their capacity for borrowing by converting the sales ledger into a more secure asset. Assigning insured trade receivables to a lender can improve the lending proposition, and could lead to increased funding and reduced costs.
Better cash flow and reduced costs: Insurance provides a robust discipline to credit risk assessment and credit management. Credit insured businesses collection of trade debts averages four days better than non insured, thus improving cash flow and reducing cost.
(Source: The Credit Management Research Centre.)
Debt collection services: Insurers offer global debt collection services that can replace the need for third party collection agents and legal support.
Use with captives: trade credit risks can be insured by captives to provide alternative solutions that reduce volatility.
Contact us to explore the benefit trade credit insurance could bring to your business.