|
The rising demand for goods and services, together with relaxed tariff restrictions, are major factors contributing to the extraordinary growth in domestic and worldwide trade. While open credit terms permit the buyer to manage its cash outflow, they expose the selling company to potentially disastrous financial losses if one or more of its key customers become insolvent or is unable to pay.
Trade credit insurance can help companies manage the risk of customers' insolvency or payment default. Marsh's Trade Credit Practice specializes in developing solutions tailored to clients' individual credit exposures. Clients can choose to cover their entire portfolio, or a select group of their largest customers.
With trade credit insurance, companies can increase sales growth by extending additional credit to approved customers and new buyers, while reducing the risk of nonpayment. In addition, companies can also benefit from more favorable bank financing by assigning the insured's accounts receivables as collateral.
Other benefits of trade credit insurance include:
- Balance sheet / cash flow protection;
- Reduced debt reserves;
- Improved terms for securitization, captives, or finite programs; and
- Alternatives to more expensive forms of collateral, such as letters of credit.
Globally, Marsh maintains an extensive network of credit insurance offices, giving clients ready access to local professionals. Our knowledge of international markets also enables us to advise on the type of cover most suitable for a client's particular situation.
View trade credit contacts.
Related information:
|
 |
|
|
Related Information
Article: Marsh's Evan Freely and Jerry Friend Write About Trade Credit and the Global Credit Crisis in World Trade
White Paper: Trade Credit Insurance and the Global Credit Crisis
Article: Trade Credit Insurance Protects Receivables and Enhances Credit Access
Trade Credit Practice
|
