Aon Trade Credit can help you increase sales and profits by removing the inherent risk of customer default. Companies often insure their physical assets and liabilities but fail to protect their Accounts Receivable. Insuring domestic or export sales against payment default will protect you from bad debts, assist you with credit control, and help you obtain trade finance from your bank.
Trade Credit insurance covers the risk of non-payment of trade debt. Effective control of debtors is a vital facet of risk management as businesses need to protect their balance sheet from customer credit risks, such as protracted default, insolvency, contract repudiation, and preferential payment claw-back by liquidators.
Aon Trade Credit has the specialist skills and experience to help you manage these risks. We are the leading provider of premium to the market.
As the provider of specialist trade credit insurance solutions, we tailor insurance products to suit the specific needs of your business.
Our solutions include:
- Export Trade Credit – cover for export debtors (including those buying on CAD terms).
- Domestic Trade Credit – cover for local debtors.
- Single Debtor / Selected Debtor – Cover key concentration of credit exposures.
- Pre Credit Risk – cover for expenses incurred prior to delivery of goods.
- Political Risk – cover for political events that could frustrate the contract of sale.
- Sovereign Buyer Default – cover against a sovereign buyer defaulting on the contract.
- Supplier Credit – cover for loss of advance payments made to suppliers.
Aon Trade Credit Services
These will complement your existing credit and risk management policies and include:
- Pre-insurance advice on your debtor portfolio.
- Insurance programme design – multiple options that meet the needs of your business.
- Access to the full range of credit insurance solutions.
- Market-leading pricing and coverage.
- Handling credit limit applications on your behalf and performing a liaison role with insurers.
- Reviewing overdue debtors and providing advice on loss minimisation.
- Pre- and post-loss claims management advice – we act as your advocate in the event of a loss.
- Training on how to access Insurer portals that provide real-time information on your debtors.
Benefits of Aon Trade Credit
An Aon Trade Credit Insurance programme will:
- Give you a better understanding of your debtor portfolio.
- Protect your balance sheet by transferring payment risk to Insurers.
- Give you access to complementary debtor evaluation tools and expertise.
- Enhance your credit management and support corporate governance best practice.
- Give you the opportunity to increase sales by focusing on customers that your Insurers have approved for cover.
- Enable you to screen out prospective customers based on Insurer intelligence, so you do not invest any more time on them.
- Allow you to offer competitive payment terms to insured customers – safe in the knowledge that your line of credit is secured by insurance.
- Help you obtain funding from your bank as trade credit insurance is widely recognised as valuable security for trade finance purposes. Many policies are assigned to banks.
Contact our Trade Credit specialist Neil Bhikharidas for more information on Aon Trade Credit’s insurance solutions for your business.