AIG's Sharon Giddings looks at the role of non-cancellable Trade Credit policies.
Protecting the receivables book.
Most businesses wouldn’t hesitate to protect tangible assets like buildings, machinery and stock. But the impact of payment default by one or more key customers can be just as devastating.
AIG offers solutions that help businesses take control of their valuable accounts receivables book and trade with the certainty that failure by a large customer won’t mean disaster for them. Our solutions include policies that insure all or part of the receivables book.
Operational and structural support for self insured credit risk through Excess of Loss coverage.
Who is it for?
Companies with turnover in excess of £50m.
Features & Benefits
Cover for non-payment due to the insolvency or default of both domestic and export buyers.
Who is it for?
Companies with turnover in excess of £25m selling on short credit terms.
Features & Benefits
Cover
Optional Services
Cover for losses arising from non-payment of Letters of Credit or other eligible transactions with named obligors.
Who is it for?
Banks.
Features & Benefits
Excess of Loss cover for non-payment due to the insolvency or default of a buyer, or inability to transfer currency due to a political act. Non-Cancellable Buyer and Country limits available providing greater contract certainty.
Who is it for?
Companies with turnover in excess of £50m selling on credit terms of up to 180 days.
Features & Benefits
Cover for failure of a supplier to export commodities paid for in advance by the insured.
Who is it for?
Banks, trading or manufacturing companies.
Features & Benefits
Key customer cover for non-payment due to insolvency or default of buyers above an agreed level for both domestic and export buyers.
Who is it for?
Companies with turnover in excess of £15m selling on short credit terms.
Features & Benefits
Cover
Optional Service
With business being conducted on an increasingly global scale with overseas networks of customers and suppliers, it can be much harder to get an accurate view on what buyers are up to, who they are exposed to and consequently much more difficult to get a sense of their financial security.
To compete, businesses have to offer flexible and competitive terms to their buyers, but that means running the risk that they don’t get paid. Bad debts, while part of the cost of doing business, can put a company’s financial future at risk.