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A Trade Credit Insurance policy transfers the risk of bad debts away from your balance sheet to an insurer, in return for a premium.

Many businesses have up to 40% of their assets tied up in trade debtors (unpaid invoices) and yet this, arguably most important asset, often remains uninsured.

Consider the impact of a large customer becoming insolvent. This will have an adverse effect on your cash flow, could jeopardize your bank facilities and ultimately may result in your own insolvency.

Our Credit team have over 100 years’ collective experience in arranging such insurance programmes for our clients who range from SMEs to multi-national PLCs.

Cover is available for:

  • All Customers
  • Key Customers
  • Single Customer

The S-Tech Difference

The -S-Difference

The S-Tech team comprises six very experienced individuals with over 100 years of collective industry knowledge. We have worked in both underwriting and broking so we have seen the market from both sides of the fence. This is important to our customers because they need a full explanation of the policy management to ensure they comply with the policy wording to make certain their claims are paid without quibble.

With access to all underwriters in the market, we are able to offer you a full broking service to find the best solution for your needs then help you get started, remaining on hand to provide advice and support throughout the policy period including a full claims management service.

Credit Insurance in detail

In return for your premium you have access to the following benefits:

  • Consistency of credit control management across your business. If you operate through multiple sites then you will want to ensure a consistent process is adopted by all in this area.
  • Consistent, individual credit limit assessment for each customer with whom you trade. The decision making process when setting credit limits can be time-consuming and stressful when under pressure to obtain sales but this is reduced with an independent view from an underwriter.
  • Continued monitoring of your customers, advising both positive and negative changes in your customers’ risk grade and profile. This allows you to focus sales efforts towards supplying credit-worthy customers that will pay and reduce or stop supplies to weak customers, who may not.
  • Professional, worldwide debt collections and litigation services at your disposal for seriously overdue debts, often without  cost. This allows you to focus on more positive aspects of your business.
  • Increase your credit limits with existing customers and direct sales accordingly.

Features available to you are:

  • Insure all your customers (Whole Turnover), a selection (Key Account) or one customer (Single Risk).
  • Cover for goods and/or services.
  • All trade sectors can be covered.
  • Claims are triggered by Insolvency or serious Default by a customer or as a result of a political situation.
  • 90% of the loss will be paid to you subject to a credit limit being in place.
  • You must establish a credit limit for each customer by applying to the underwriter or using your limit of discretion.
  • A limit of discretion allows you to set credit limits at lower levels, typically £10,000 or less but subject to justification such as good trading history or a credit reference report.
  • Excess typically ranges from £500 to £1000.
  • Policies contain a mutually agreed stop date when services or deliveries should be suspended.
  • Policies can be written with cancellable or non-cancellable credit limits.
  • Fixed or variable premiums.
  • On-line system helps you operate the entire policy management process, from initial credit limit applictaion to claims.

FAQ's

  • In return for your premium you have access to the following benefits:

    • Consistency of credit control management across your business. If you operate through multiple sites then you will want to ensure a consistent process is adopted by all in this area.
    • Consistent, individual credit limit assessment for each customer with whom you trade. The decision-making process when setting credit limits can time-consuming and stressful when under pressure to obtain sales but is reduced with an independent view from an underwriter.
    • Continued monitoring of your customers, advising both positive and negative changes in your customers’ risk grade and profile. This allows you to focus sales efforts towards supplying credit-worthy customers that will pay and reduce or stop supplies to weak customers, who may not.
    • Professional, worldwide debt collection and litigation services at your disposal for seriously overdue debts, often without cost. This allows you to focus on more positive aspects of your business.
    • Insure all your customers (Whole Turnover), a selection (Key Account) or one customer (Single Risk).
    • Cover for goods and/or services.
    • All trade sectors can be covered.
    • Claims are triggered by Insolvency or serious Default by a customer or as a result of a political situation.
    • 90% of the loss will be paid to you subject to a credit limit being in place.
    • You must establish a credit limit for each customer by applying to the underwriter or using your limit of discretion.
    • Excess typically ranges from £500 to £1,000.
    • Policies contain a mutually agreed stop date when services or deliveries should be suspended.
    • A limit of discretion allows you to set credit limits at lower levels, typically £10,000 or less but subject to justification such as good trading history or a credit reference report.
    • Policies can be written with cancellable or non-cancellable credit limits.
    • Fixed or variable premiums.
    • On-line system helps you operate the entire policy management process, from initial credit limit application to claims.
  • If you are involved with the Construction Trade then you may be familiar with the above term or even had to obtain one.

    A Performance Bond is a guarantee given by an underwriter to a Contractor on behalf of a sub-contractor. The underwriter guarantees to pay a sum of money (usually 10% of the contract value) to the Contractor in the event that the sub-contractor becomes insolvent during the the contract works period and is therefore unable to complete the work for which they were originally employed.

  • A sub-contractor may be able to obtain a bond or guarantee from their  own bank. However, to do so may tie up the very valuable working capital necessary for successful completion of the works.

  • Underwriters will require a fully completed proposal form, the bond wording (if provided by the Contractor, otherwise a standard ABI wording will be used) and a sight of full, up-to-date financial information such as annual and/or management accounts. They may also require directors’ guarantees and, should group companies be involved, cross counter indemnities. There may also be other case-specific conditions imposed or with which to comply.

  • Many underwriters are prepared to put a bond facility in place for a sub-contractor to make the underwriting process more simple each time a bond is required. This is essentially a line of credit which can be accessed when required and without the need to gather vast amounts of information each time the sub-contractor needs a bond. The sub-contractor keeps the underwriter furnished with management and other accounting information on a regular basis together with bond details such as certificates of practical completion. In return, they have a line of credit already in place to use as and when required.

     

Whole-Turnover Insurance

Bonds & Surety Guarantees

Specific Account Insurance

Invoice Discounting

Cash Flow Finance

Agricultural & Horticultural Insurance Scheme

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