During the recent financial crisis there has been an increase in the use of trade credit, according to the ECB, and this presents both threats and opportunities. With a dedicated, expert and proven team, Marsh provides an array of services concerning Trade Credit insurance, that can help protect your company’s bottom line, boost growth and secure more favorable financial terms.
Senior managers and directors have considerable responsibility ensuring that all threats to the sustainability of their businesses are controlled and managed. Within the framework of complying with the duties of managing a business, it is possible that credit risks may be overlooked. Yet the impact of a bad debt on the business can be catastrophic.
The real value of credit insurance, aside from the fundamental balance sheet protection, is that it not only facilitates improved cash flow and reduced borrowing rates, but is also an enabler of increased funding levels from your bankers. It creates a secure platform for developing trading relationships with new partners and products, or in new markets, giving you a competitive advantage over other businesses which use their own balance sheet to fund such risks.
We use Marsh’s global relationship with insurers strategically to leverage the best possible value for you, and employ an expert team that focuses only on trade credit insurance and has a detailed understanding of the issues, the insurance market, and the solutions available. For example, a European pharmaceutical company recently halved its annual premium (USD 2.3 million saving) and benefited from significant cover enhancements thanks to the partnership with Marsh as a broker.
We have a standalone trade credit claims management team that provides you with both claims management and advocacy services. This can reduce settlement time and improve your cash flow, as well as mitigating the risk of claims rejection and associated impact on profitability.
Marsh’s Trade Credit Practice helps sellers manage receivables risk – and a wide range of other trade-finance issues – by providing access to credit insurance solutions worldwide. Our Global Clients Group is a unique, internationally coordinated team that facilitates credit placements in more than 50 countries. And our Lender Solutions Group helps mitigate financial risks and enhance borrowing via structured credit solutions that make larger transactions more attractive to lenders or financiers, thus enhancing economic growth.
As a result Marsh’s Trade Credit Practice is able to provide you with insurance terms and program structures that minimize your costs while maximizing your protection levels.