Expansion is the name of the game in today's domestic and global markets. Companies are looking to sell goods or services on credit terms both domestically and overseas, along with penetrating newly emerging markets where opportunities abound for exponential growth.
On the flip side, the risks are greater and deeper than ever before: non-payment due to a customer's insolvency, protracted default, political risks or acts of war that prevent contract performance and failure to perform obligations under contract. A growing organization cannot afford a major loss in cash flow due to default of one or more of its customers.
Whether you want to grow your business in domestic or international markets or simply protect your cash flow from a catastrophic customer event, HUB has the tools, resources and most importantly the people to support your firm's risk management needs.
Planning for Growth
If your business plan includes sales growth and expansion, consider the following questions as part of your long-term strategic planning:
IS THE LARGEST ASSET ON YOUR BALANCE SHEET INSURED?
Your business incurs credit risk every time you extend credit to your customers. Accounts Receivable, one of the most liquid and valuable assets on a balance sheet, supports an organization's cash flow yet it is often one of the most unprotected asset classes.
CAN YOUR ORGANIZATION SUSTAIN A CATASTROPHIC CREDIT LOSS?
In an uncertain global economy, companies who sell on open credit terms expose their accounts receivable to bad debt losses and thus cash flow constraints. The inherent risks associated with bad debt losses are greater and deeper than ever before. These losses often occur as a result of non-payment due to a customer's insolvency, protracted default, cyber event, political risks or acts of war that prevent contract performance and/or failure to perform the obligations under contract. A growing organization cannot afford a major loss in cash flow due to default of one or more of its customers.
ARE YOUR FOREIGN LOCATIONS PROTECTED AGAINST POLITICAL PERILS?
Foreign property and assets are subject to much broader risks than those located in your home country. Are your assets protected from confiscation, expropriation, naturalization, unfair taxation, terrorism, war, political violence and its resulting business interruption and currency inconvertibility?
Whether you want to grow your business in domestic or international markets or simply protect yourself from catastrophic customer events, HUB International has the tools, resources and most importantly the people to support your firm's risk mitigation needs.
How Trade Credit Insurance Works
Whether you sell within your town or around the world, credit insurance helps ensure that you will be paid for merchandise or services delivered to your customers. A trade credit insurance policy is a guarantee that you will be paid, subject to the terms and conditions of the policy, for the merchandise shipped or services rendered to your customer. By assuring payment, credit insurance can strengthen your company's balance sheet and enhance your borrowing power, helping you grow your business.
Trade Credit Insurance protects against:
- Unforeseen credit loss(es) in accounts receivable
- Insolvency (Chapter 7 or 11 or international equivalent)
- Protracted Default (slow pay delinquency)
- Political Risks (Government Moratorium, Contract Frustration, Discharge of Debt, War, Transfer, Public Buyer Default)
HUB INTERNATIONAL TRADE CREDIT & POLITICAL RISK
HUB International's Trade Credit and Political Risk team of experts can assist your organization in building customized credit risk mitigation solutions based on your specific needs and business model. Our dedicated experts can work with you to identify your organization's risks and limitations and develop key strategies to help you succeed in any environment.
As a leading insurance brokerage, HUB has strong relationships with all of the top rated Credit Insurance carriers in North America as well as access to carriers overseas. We will assist in establishing the structure that is consistent with your needs and requirements for protecting your domestic and export accounts receivable. With this protection in place, you can be assured that your accounts receivable sold on open credit terms will be paid, either by the debtor or the trade credit insurer within the terms and conditions of the policy.