Isle of Man
Aon Credit International | Aon | UK


Why Credit Insure?

Utilising trade credit insurance can offer a business a number of benefits:
 

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Promotes growth whilst maintaining controls

The enhanced credit management processes reinforced by credit insurance allow you to safely extend payment terms to customers in existing and new or developing markets.

Directs and supports sales to higher margin markets 

Top or key account cover is available to support sales to specific or high level margin markets

Supports mergers and acquisitions

Credit insurance provides investee companies with protection against bad debt from acquired or merged customer portfolios 

Facilitates access to finance

Having credit insurance can increase your credit rating giving access to improved and more economical levels of finance

Balance sheet engineering

You can use the debtor asset on your balance sheet to free up working capital by utilising invoice discounting or factoring.

Cost effective security provision

Credit insurance can act as a cost-effective replacement for expensive bank guarantees and letters of credit. 

Enables companies to extend credit terms 

As your shipments are covered, the fear of “not getting paid” is removed meaning you can offer extended payment terms to customers giving you a competitive edge in your market.

Reinforces credit management processes

Disciplines within a credit insurance policy support best practice and sound credit management processes, reinforcing and enhancing your existing procedures.

Access to credit risk expertise and analysis

Support is available for setting credit limits on your customers, collections, and, in the event of a claim, the management of recoveries and salvage. 

Identifies potential losses

Access to key credit risk analysis from the insurers on company, sector, and political risk gives insight to assist in avoiding losses.

Greater insight into customers’ likelihood to fail

Valuable market intelligence from the insurer including trend analysis, payment performance, and economic and political challenges affecting your customers.

Transfers risk to insurer’s balance sheet

Credit insurance removes the credit risk from your balance sheet which improves your margin and bolsters your P&L.

Reduces bad debt provision

As potential losses are covered, you can reallocate excess bad debt provision as working capital.



 

Last updated 3 February 2017

Aon UK Limited is authorised and regulated by the Financial Conduct Authority in respect of insurance mediation activities only. FPACI001.4.16