Article

Credit Insurance and Surety Solutions for Companies

Credit insurance solutions can help companies to; lower borrowing costs, protect the balance sheet, unlock additional funding from lenders and improve key financial ratios or covenants.

Access to working capital is proving to be a challenge for many companies because of COVID-19. Diminishing revenues, difficulty in collecting account receivables, and increased bad debts are severely impacting cash flow, the ability to access cash from public debt markets, and opportunities to obtain new bank loans.

As companies emerge from the COVID-19 crisis, many will need liquidity to expand sales and invest in strategic growth. Trade credit, surety bonds/guarantees, political risk and structured credit insurance are established tools that can help companies facing liquidity challenges and provide their lenders the confidence they need to secure funding.

Benefits for companies

Our credit insurance solutions can help companies to:

Lower borrowing costs.
Protect the balance sheet.
Unlock additional funding from lenders.
Improve key financial ratios or covenants.
Gain a competitive advantage with buyers, suppliers, or clients.

We regularly provide insight and advice on credit, country, and performance risk issues affecting lenders, corporations, and public agencies so that business strategies can be quickly adjusted in light of changing circumstances.

Gain access to short-term liquidity.

Consider use of trade credit insurance to secure corporate supply chains via receivable or payable finance programmes. Learn more

Release liquid assets pledged as collateral and/or bank capacity consumed by bank guarantees.

Consider use of surety guarantees to replace other forms of collateral (such as bank lines) to increase lending limits or reduce regulatory capital. Learn more

Increase borrowing from existing relationship lenders.

Consider use of non-payment insurance or bank surety syndication, which can dilute concentration levels within lenders’ credit risk exposure — whether to individual borrowers, industries, or countries — enabling them to lend more to companies. Learn more

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