Have you been worried of getting paid by your commercial clients, experienced slow payment or even had to write off an account? You are not alone. Did you know that the overwhelming majority of corporate insolvencies in Australia are small businesses?
Are you at risk? Look at our more detailed questionnaire please get in touch if yes was not the answer to all these questions.
How we can help:
We understand that the long term loss of a buyer and future revenue stream is painful, in addition there is also the short term effect on cash flow and immediate loss of profit. In a worst case scenario, this impact could be devastating, even for the healthiest of businesses.
Together we will work on the right risk balance that protects you from this worst case scenario, and at the same time allows you to grow faster and with the confidence of real time market intelligence about your buyers.
- Are you confident that your major clients are not at risk of failure?
- Does the 80/20 rule apply to you – i.e. 80% of your turnover is generated with 20% of your clients?
- Do you have the ability to detect if the ‘riskiness’ of a buyer rises, do you have sufficient controls and monitoring in place to see the early warning signs?
- If your business wold suffer a significant loss from one of the top clients what effect would this have on your cash flow? Can your business survive it?
- Have you ever undertaken an analysis to identify if additional security or credit insurance could provide a plan B?
- Can your business afford the risk of expanding into new and unknown markets?
- Can your business achieve sufficient and profitable growths while taking all the risk itself?
- Are you satisfied with the amount of financial data you can gather on your potential and existing customers?
- Does your business have the necessary credit management expertise in-house?
It’s time to change up a gear, get in touch with us today.
We are here to support your ambition for growth, whether you are a start-up or an established company with subsidiaries overseas, our commitment to you is to find the best solution for you.
Keen to find out more? Have a look at some real life examples.
A risk solution for you may include one of the following products:
Trade Credit Policies
- Sources of risks that may be covered are Commercial, due to Creditor Insolvency or continued non-payment, Political, a non-payment due to an event in your client’s country (e.g. currency transfer restriction, expropriation, contract frustration) or Environmental, non-payment linked to a natural disaster.
- Comprehensive cover also known as Whole of Turnover: a Customized policy covering the entire buyer portfolio; Export and/or Domestic Turnover. Negotiable Discretionary Limit catering for easy administration of smaller accounts, so your credit management team can approve limits up to a certain threshold.
- SME: An easy to manage policy that grows with you, providing you access to buyer information, collection of unpaid bills and up to 90% of indemnification for undisputed invoices in the event of insolvency or slow payment (Protracted Default).
- Excess of Loss: For customers with an excellent internal credit management seeking the protection for unexpected or major loss events across their entire portfolio.
- Selected Risks: Protection of the Key Accounts over an agreed balance, optional non –cancellable credit limits.
- Industry Specific Solutions: Advance payment to Suppliers cover, Binding orders, Consignment stock, Pre-shipment cover, Receivable Purchasers, School Fee programs, Financial Institution, Retroactive Buyer coverage and more.
Cyber Risk Protection
- Data breaches are now a fact of life, and with the increasing networking of the economy (Industry 4.0) and our lives (smart phones) the vulnerability to become a cyber-attack victim is rising exponentially. Customer data and credit card information are only the obvious targets, and every company and its management must be aware that being a target is most likely a certainty not just a possibility, regardless of the size of the company.
- How can you secure your business network, your social media, website, data handling, technology and information processes when you don’t know exactly what you are securing against? As cybercrime is evolving and becoming more sophisticated so are the fairly new options to enhance your risk management with a Cyber Liability Insurance policy.
- A holistic approach to cover your specific cyber, privacy and media requirements, where as traditional policies only partially cover these risks (e.g. data loss and cost of data recovery is an ‘intangible property’ and often excluded from Business Interruption policies).
- Independent Risk Analysis beyond insurance, providing you with expertise and knowledge transfer for preventive protection, recommendations on how to minimize specific risks, best practice risk management, the importance of an incident response plan.
- First Party coverage (covering your own costs) that not only deals with the financial loss of data but also provides expertise, crisis management in the event of a data breach, covering the costs of forensic investigations, data recovery, cost of notifications to clients or for negotiators in case of your data being held to ransom.
- Third Party coverage as a result of the incident claimed by others e.g. raised by your clients due to disclosure of private information; breach of intellectual property, defamatory material, damage to third –party systems, fines and penalties (e.g. payment card industry fines).
Surety and Contract Bonds
- Primarily used in the construction, engineering and infrastructure sectors to cover contractual performance obligations, as a flexible alternative to bank guarantees or other securities.
- A three party contract where the ‘Surety’ (typically an insurer) provides a guarantee to the Principal of the Contract (the Beneficiary) against the default of the contractor.
- Bid Bonds: Securing a contractor’s obligations to proceed with a contract upon being awarded the project. Guarantees that a performance bond will be supplied.
- Performance Bonds: Protects the beneficiary against non-performance or default – usually these bonds extend to Practical completion.
- Advance Payment Bonds: Secures the beneficiary’s position on funds advanced to the contractor for site establishment or to pre-purchase plant and equipment.
- Retention Release Bonds: In conjunction with the permission from the principal client to release full progress payment to the contractor.
- Maintenance Bonds: Covers contractors’ post completion obligations during the warranty period, usually 3-12 months post-completion.
- Off-Site Material Bonds: Secures the beneficiary for goods and materials held off site and which are paid for by the beneficiary. In case the aforementioned goods or materials are not available when required for use as established in the contract.
Risk Management Services
- Risk advice you can trust. Our specialists can support your credit management team in ongoing compliance matters for your trade credit policies, new staff training and overdue reporting – or with more complex or ad hoc matters e.g. negotiating new buyer limits with the insurer, selection of information agency providers, collection services or premium funding.
- Independent reports on credit management processes, cash flow improvements or cyber risk analysis to present to your C-level, Risk Advisory team or board.
- We are highly specialized and well connected, having access to a global network of independent brokers for solutions outside Oceania.
If there is a service we do not offer, we can refer you to other industry experts that we believe are knowledgeable, share similar values and work ethics.