The construction firm
When the customer of a construction company unexpectedly went into insolvency, their cash flow was secured by the quick payment of their claim for £600,000 under their credit insurance policy.
For this medium-sized company, the sudden failure of a major customer owing this significant amount had the potential to place the viability of the company in doubt. Unlike many business failures, poor financial performance was not to blame, so the insolvency was unexpected and caught the whole sector by surprise, meaning there was no time for the company to reduce their credit exposure.
However, the company had insured their trade receivables with a credit insurer, who as soon as they were aware of the situation had their claims teamwork with the policyholder companies credit manager and broker to ensure swift payment of the claim.
Less than 4 weeks after submitting the claim, the construction company received payment in full, helping prevent the potentially damaging impact on their cash flow and balance sheet.
The multinational
As a multinational company that operates around the clock, is present in almost 100 countries with a direct presence in over 30, this international manufacturer not only appreciates the cover provided by their credit insurance policy, but also really values the information their insurer can provide them with about the companies in different parts of the world they want to do business with.
The relationship with their credit insurer allows them to apply for a credit limit for a new customer, and if the insurer is happy with the request, then the limit can be agreed quickly. If they do not agree, then the firm knows more work may need to be done and more information required to have that credit limit accepted.
Having a credit insurance policy allows this multinational firm to ensure they are not taking on any unnecessary risks, and work with their insurer who have taken the time to visit their larger subsidiaries and really understand how the business operates. While they work directly through their broker most of the time, they can have direct access to the credit insurer if they wish, when they need them.
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