As COVID-19 continues to impact the global economy, risk increases that customers will be unable to pay their outstanding receivables. Business credit Insurance is designed to protect your business from the risk of non-payment by debtors specially in the current COVID 19 scenario. Business credit Insurance is a financial risk management tool that protects company’s unsecured debt and provide mechanism to transfer the financial consequences presented by a range of commercial risks to the Insurance company.
Market research shows that a majority of the buyers will default in payment. These defaults could be in the form of delay in payment, non-payment or insolvency. It is further assessed that businesses are running out of liquidity because of the current pandemic which will increase the risk of non-payment.
Let your Bankers help you to run your business smoothly by structuring a Business credit Insurance policy as per your business requirements. This Business credit Insurance policy will cover the risk of non-payment arising from willful-default, insolvency or the current pandemic.
What can possibly happen to your Buyers due to COVID 19:
· Turning Insolvent
· Cash Flow Crunch
· No Business Continuity
· Blockage of Funds
· Buyer Absconding
· Death of Owner/Partner
Business credit Insurance Covers:
• Insolvency of buyer : Buyer legally declared insolvent / bankrupt
• Protracted/Willful default : Buyer fails to pay, but not declared insolvent / bankrupt
• Political Risk: Currency Inconvertibility/Non-transfer (Only for overseas receivables)
Business credit Insurance Benefits:
• Asset security : Assets receivable secured
• Cash flow protection : Secures unforeseen credit loss
• Risk Management : Hedge against unforeseen Commercial & Political uncertainties
• Increases borrowing power : Bank finance convenience
• Compete effectively : Business from L/C to clean credit possible
• Expand sales : New buyers / market exploration possible
Why Origin Insurance Brokers:
· We ensure that you get the right advice and solution from our unrivalled capabilities; our people, our products and our market position.
· Our team has extensive technical expertise to accurately evaluate your trade credit risk exposures and to design, structure and negotiate tailored trade credit insurance solutions to suit your unique requirements.
· Largest Client servicing & claims management team across any broker in India for Business credit Insurance