One Source Risk Management and Funding, Inc.

Transcription

1 One Source Risk Management and Funding, Inc.

2 Credit Insurance The Dynamic Solution to a Volatile Marketplace

3 The Value of Credit Management

4 What Is Trade Credit Insurance? Trade credit insurance protects a company s commercial accounts receivable from unexpected and catastrophic losses resulting from insolvency or "non/slow-payment" by its buyers and from political events that obstruct payment. Like all insurance, credit insurance involves risk sharing rather than 100% risk lay-off.

5 A Growing Trend Trade credit insurance is growing at a rapid pace within the United States. Spending on credit insurance has increased 40% in the past 2 years. Approximately $800 Million USD in annual premiums. Strategic Management tool for policyholders that protects from commercial A/R losses following a customer s bankruptcy or payment default, or even events in overseas markets such as political turmoil or import and trade restrictions. Policies can be designed to cover domestic receivables, export receivables or both.

6 Benefits of Trade Credit Insurance for your Clients Protect against catastrophic events/risk mitigation Increase Sales Enhance credit management Improve/Facilitate financing

7 Balance Sheet Protection! Accounts Receivable are typically one of the largest assets owned by a company. Typically 80% of a company s business comes from 20% of its customers. Imagine the impact on your obligor if one of their largest customers didn t meet its obligations. Manage bad debt reserves and write-offs with greater certainty. Take excess bad debt reserves back into income. Improve cash-flow; no big surprises! Improve Sarbanes-Oxley compliance!

8 Increase Sales! Credit insurance enables you to sell more goods/services on credit terms while substantially reducing the overall risk of exposure to non-payment from buyers. Credit insurance may allow you to extend higher credit limits. Credit insurance assists with entry into new markets. Remember a sale isn t a sale until you get paid.

9 Enhance Credit Management! Receive unbiased, third-party credit opinions on customers/prospects. Carriers may be privy to knowledge that the insured does not know. Reduce credit investigation costs and ensure sound Credit Management procedures. Accurately budget and forecast bad debt write-offs.

10 Improve Financing! If you have a few large customers or do a lot of exporting, your bank s credit policy probably views them as a questionable credit risk. Having credit insurance improves creditworthiness. Reduce concentration risk Increase the pool of eligible receivables, often including foreign receivables Increase advance rates Reduce interest rates Strengthen client relationships - offer better financing terms backed by the knowledge receivables are insured.

11 One Source Products Credit Insurance Political Risk Insurance Put Contracts Outsourcing Collections Strategic Alliances with other Service Providers Internationally

12 Who Is One Source? One Source Risk Management and Funding, Inc. is a specialty brokerage firm focusing on accounts receivable solutions. One Source was founded in Portland, Maine in Since then we have opened offices all across the United States, entered into alliances internationally and are one of the fastest growing specialty brokers in the world. One Source approaches the market from a credit and service perspective in order to make sure you are getting the best possible program for your particular need. One Source differentiates ourselves from the market by our unique service capabilities. Not only are our clients assigned a dedicated service representative, we also have employed experts from the Insurance, Banking and Credit fields to give our clients unparalleled service levels. We also leverage the strength and resources of our parent organization, Seafax Inc. to allow us to take service levels beyond those of any other Specialist Broker.

13 One Source Risk Management John Flahaut Office: Cell: