from Warren
Your Recruitment and Corporate Services Consultant
I have been in the Credit Management industry for many years and seen
first hand good family business’s and companies fold because of a
large un-paid debt.
Consider protecting you largest asset the Debtors Ledger and give
yourself peace of mind.
Credit Insurance
What is Credit Insurance?
Trade Credit Insurance is the protection of receivables against
loss due to the insolvency or default by trade debtors both in
Australia and overseas.
Trade Credit Insurance provides protection against:
Insolvency
Protracted Default
Political Risk
Why Credit Insure?
· Are you anxious about your customers’ financial stability?
· Would you benefit from access to additional working capital or cash?
· Are you looking to expand into new, possibly politically volatile, markets?
· Could a bad debt significantly impact your financial performance?
What would happen if one of your largest debtors failed?
Statistics show that, on average, debtors represent over 40% of a company’s
current assets. Therefore the need to protect the balance sheet and
shareholders’ funds against the failure of debtors is of paramount importance.
The risks to your cash flow, working capital and profits, in the event of the failure
of a major customer, can be significant but a simple tailored credit insurance
solution is available.
Benefits of Credit Insurance
Security for Finance
Your credit insurance policy can be assigned to a bank or financial institution
providing an opportunity for additional secured finance.
Expansion
You can grow your business with confidence knowing that your debts
are underwritten.
Peace of mind
Credit insurance provides a virtually unlimited cash reserve for a known cost.
Protecting Profits and Cash Flow
The extra sales which are required to offset a loss of $50,000 can be as
much as $1,000,000 where pre-tax profit margins are 5%. Credit Insurance
will inject liquid funds back into your business.
Enhanced Credit Management
Even the most stringent and disciplined credit manager cannot guarantee
the prevention of bad debts. Credit Insurance will, however, enhance and
strengthen credit management procedures.
Call 08 9228 3300 for more information or to arrange a visit.