Granting Credit is an inexact science making it difficult to remove all of the risk. Since the last half of 2021 we have had to deal with rising prices due to:
· Supply chain issues
· Inflation well above where our governments think it should be
· Rising interest rates
· Double digit increases in commodity prices
· The Russian incursion into the Ukraine
These issues have come together at the same time and decisions that you made only a short time ago are, generally, no longer applicable. Credit Limits need to be increased to facilitate selling the same volume of product to your customers. Payment terms may have to be extended as shipments are affected by supply chain issues. Your choice of trading currency may also be affected by worldwide events and your Treasury Department must be on its toes to make sure that losses are minimized.
An effective tool that thousands of companies around the world use to mitigate risk of your accounts receivable is Trade Credit Insurance. This product provides you with additional information and protection against bad debt in these uncertain times.
Trade Credit Insurance can assist in relieving the pressure of increasing limits and terms you face in these rapidly changing times. Their additional access to information and the ability to provide protection to your current demands will allow for continued support of your customer base and further provide relief in case of default or insolvency.
Having been a National Credit Manager for fifteen years and a Trade Credit Specialist for twenty-three, I have the experience necessary to help you navigate these uncertain times. Finding a way to reduce these risks is a part of a Credit Manager's job and now is the time to review how Trade Credit Insurance can reduce risks, both domestically and abroad.
Give us a call to discuss your companies needs and we will advise you of various approaches to mitigate your risks.
Mark Hall, Vice President, Credit Insurance
Elevate Global Insurance Brokers
C 416 526 6548