Credit Insurance Information pack National Credit Insurance (Brokers) Pty Ltd

Transcription

1 Credit Insurance Information pack National Credit Insurance (Brokers) Pty Ltd

2 Credit Insurance Five reasons why you can sleep better at night 1. Preserve profit Too often and too late businesses realise a bad debt is really lost net profit. 2. Protect liquidity and cash flow The proceeds of a credit insurance claim inject liquid funds back into a business. 3. Gain confidence to grow your business Your business can grow, knowing the cost of potential failures has been covered. 4. Strengthen credit management Through credit insurance, firm credit limit decisions are provided on the larger debtors of the business based on sound analysis and information. 5. Buy the equivalent of bank security Insuring your debtors ledger often provides a new source of security to offer bankers and protects shareholders assets. Benefits Immediate cash flow access in the event of insolvency. Unlimited cash reserve for the balance sheet maintained at a planned tax deductible cost. Source of security to offer bankers in addition to protecting shareholders assets. Delivers value to the business through growth and opportunity. Provides immediate indemnity to the policyholder in the event of an insolvency. NCI as your broker A dedicated limits and claims department. Access to a large database of information on buyers. Risk management tools to reduce and limit losses such as monitoring of buyers for adverse information. Credit risk management product and a commercial collections product. PPSA registration and management.

3 Credit Insurance Risk Management Five reasons to relax 1. Deal with the right entity Typically most ledgers have an error rate of around 10%. Let us verify your ledger as dealing with the correct legal entity ensures you have a contract to pursue in the event on an insolvency. 2. Timely advice on changes We can provide you with early warnings on identified debtors on a timely basis. Changes or adverse events involving one of your debtors will be notified to you as soon as we become aware of the facts. 3. Reliable credit limits NCI s experienced analysts draw on the wide range of data available and provide a considered opinion on credit limits for major debtors. 4. Customer profiles NCI provides personalised, fresh and accurate reports. NCI s exclusive debtor information database could help to protect your most valuable asset, your debtors ledger. Unlimited access to this database is an included service. 5. Practical advice NCI s experienced team can give advice on subjects as diverse as effective ROT (retention of title), directors guarantees, PPSA, or your terms of sale. NCI can even audit your credit risk management procedures manual or provide training. Our processes include the following: Information is gathered to confirm entity details, investigate potential adverse information and gather relevant information to support a credit insurance policy or provide independent advice. A dedicated NCI assessor will review the information collected to complete a detailed analysis. A written recommendation is provided outlining the level of credit limit we believe is justified. This includes commentary regarding creditworthiness of the debtor. An NCI credit snapshot report will accompany each recommendation, summarising information collated. NCI continue to monitor the entity assessed. Any information which may change the risk profile, is alerted via NCINet to you immediately.

4 Credit Commercial Insurance Collections Five reasons why all is not lost 1. Protect your debtors ledger Your debtors ledger is probably your greatest asset so the threat of bad debt is often unsettling and sometimes even the best credit management cannot prevent a bad debt from occurring. 2. Reduce your costs Negotiation is more effective than litigation. It can not only prevent a late payment becoming a bad debt, it can also preserve the customer relationship and keep costs down. 3. Improve your cash flow In addition to helping you with problem debtors, we provide a regular accounts receivable service designed to collect all your payments on time. 4. Risk free collections You only pay for what you receive. No joining fees, no on going subscription fees. We operate on a no success, no fee basis thereby guaranteeing cost effectiveness. 5. Real time reporting Information is vital and you need to know immediately. Our internet access gives you the freedom to view the current status of your debtors, 24/7. We also provide accessible, sound and strategic advice at no additional cost via or telephone. Other features and benefits Local representation around Australia. Enhance credit control functions and procedures through additional value added credit management services. No joining fee and no success = no commission. Ceiling on commission $4,950 + GST is the maximum cost to you. Online access You gain freedom to check your collections when and where you want using our NCINet database. Weekly status reports. Extensive database with over 490,000 debtors to help you make good credit limit decisions. Gain unique insight into your debtors through our up-to-date accurate and proven data. You may share legal costs with other NCI clients who are taking legal action on the same debtor info@nci.com.au

5 Credit NCIRadar Insurance Five reasons why you can pre-empt the future 1. Custom debtor alerts At times you may want to investigate your debtors to ensure a safe and reliable trading relationship. Custom alerts are available to suit your debtors ledger. 2. Access to information on 490,000 debtors NCI has been in the credit industry for over 25 years and this experience has created an extensive and exclusive database with information on over 490,000 entities for you to tap into. 3. Manage your policy when you want and need it NCIRadar is available to access 24/7, when you need it. 4. Reduced administration costs and time The ability to manage your policy online is not only convenient, but saves you money and time. If you would like to talk to someone, during office hours an NCI contact will be more than happy to help you. 5. Reports as requested NCIRadar can provide reports on your customers online. This information will assist you making important credit limit decisions quickly. The NCIRadar approach NCI s online system NCIRadar has been enhanced to fit your needs, allowing you the ability to navigate policies and accounts. Options allow you to update your policies or view the state of credit limits, claims, collections etc. If helpdesk support is needed, it is only a click or phone call away. NCIRadar also encompasses extra services to assist in management and compliance of your policy, such as reminders for monthly reports. NCIRadar opens up possibilities to search data on over 490,000 debtors with options to create customised reports. The added benefits of this information includes real time data on your debtors when adverse events occur. You can even opt to receive alerts via as they happen. The NCIRadar system continues to evolve as the NCI team find new ways to innovate. It is a great tool to assist your credit management practices and is exclusively available via NCI.

6 INDEX SCORE 12, NCI INDEX SCORE COLLECTIONS ADVERSE EVENTS CLAIMS Q2/06 Q2/07 Q2/08 Q2/09 Q2/10 Q2/11 Q2/12 Q2/13 Q2/14 301, the HIGHEST number of claims placed with NCI since Q ASIC reports the top 3 nominated cause of FAILURE are: Inadequate cash flow Poor strategic management Trading losses Total value of CLAIMS in Q3 remained high at over $30 million Major insolvencies in Q3 include: Australian Outdoor & Leisure Gelpack Enterprises, trading since 1958 NCI have issued 15,117 ADVERSE ALERTS in this quarter Collections were on the move in Q3, up 21% when compared to Q3 2013