BUSINESS PROTECTION SERVICES
Mitigating operating & credit risks against any erratic changes & unforeseen circumstances.
banker guarantees & bonds
Banker guarantees & bonds for SME companies.
Banks and insurance companies are offering banker banking products for SMEs in Singapore can be a lot more complex to understand. That’s because the banking needs of companies vastly differ from what we need as individuals.
Companies require numerous types of banking products. One common product that companies typically need to conduct business is a Banker’s Guarantee.
Why trade credit insurance?
Each time when a sale credit is granted to your customers, your company is exposed to the risk of non-payment. There is a likely chance that a business will experience a loss within its accounts receivable than any other asset. With an average of 30% to 40% of a company’s assets in the form of accounts receivables are a critical component in the balance sheet, which will directly be affecting the cash flow and profitability. However, if a company is insured or covered against revenues or income loss, the liability or other unpredictable, high-exposure events will offer a safer way to do business and a peace of mind.
Trade credit insurance, also called accounts receivable insurance or trade credit risk insurance, is a financial tool that manages both commercial and political risks that are beyond a company’s control. It is protection against your customers’ failure to pay their trade debts. This can happen when your customer becomes insolvent or fails to pay within the agreed upon time-frame.
Why it's important for your business?
More important than mere risk transfer, a commercial credit insurance policy is an investment in a partnership with the insurance company. As the insurance company is helping to leverage the knowledge and financial stability of the insurance company to realize several valuable benefits that can offset the cost of the coverage many times over.
Investing in the trade insurance policy enables you to:
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Grow sales safely, domestically and abroad, to new and existing customers
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Protect your business from the risk of customer default and catastrophic loss
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Improve the efficiency and results of your credit management department
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Gain a competitive advantage in exporting by offering safe, open terms overseas
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Reduce bad-debt reserves
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Obtain greater access to bank financing, often at more favorable rates
As a virtual extension of your company, the insurance company will provide the insight and resources you need to manage and maximize and protect your receivables. When you initiate a business credit insurance policy, our experts will analyze your customers’ creditworthiness and financial stability and then following up with the assignment of the credit limits. These are the amounts the insurance company will indemnify if those insured customers fail to pay. Our partners are industry specialists who will work closely with you to deliver in-depth credit analysis and ongoing account monitoring to provide early warning of potential credit risks before they become a loss. With thousands of policyholders from small businesses to large multinationals, to show you how the accounts receivable insurance coverage delivers the value that matters to your business.
How well you know about your customers?
Some warning signs how customers are defaulting of your payments.
Late payments repeatedly
Is your customer fail to comply with the payment terms? Are they likely struggling with volatile cash flow issue?
Questionable trade credit disputes
Is your customer landed legal suits with trade creditors or the bank is taking legal action against the default payments?
Deteriorate banking
relationships
Is the existing banks refuse to renew or reject the new banking loans, due to the changes of new lending guidelines.
Bad credit bureau conducts
Is the commercial bureau records showed the historical payment patterns? Cross-checks from market feedback, is that relatively bad?
Give excuse, excuse & excuse of payments
Bad paymaster good at giving excuses despite they know they have breached the payment agreement. Yet, they repeatedly delaying.
Covered countries
How trade credit insurance protects my businesses?
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Risk management tool to protect your company’s account receivables against non-payment by your buyers
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Both your local and overseas debtors can be insured against non-payment arising from commercial risk and non-commercial risk. Commercial risk (protracted default/delayed payment or insolvency/bankruptcy of your buyer) whereas non-commercial risk (political risk)
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Indemnity of up to 90%
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Premium is a small percentage of annual insurable turnover
The key benefits.
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Protection against non-payment of your trade debts
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Protection in selling to new & unfamiliar markets or buyers
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Protection to extend credit terms to your existing buyers
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Protection to increase credit limit to your existing buyers
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May be used as a financial management tool to obtain financing from banks or financial institutions
Types of risks covered.
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Insolvency or Bankruptcy of your buyer
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Non-payment of goods accepted by your buyer
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Transfer delay, or delay in payment due to imposition of foreign exchange controls in your buyer’s country
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Cancellation or imposition of import license in your buyer’s country
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War and other disturbances in your buyer’s country which could affect debt settlement
What is not covered.
Overview of trade credit insurance.
How it can protect
my businesses?
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Risk management tool to protect your company’s account receivables against non-payment by your buyers
-
Both your local and overseas debtors can be insured against non-payment arising from commercial risk and non-commercial risk. Commercial risk (protracted default/delayed payment or insolvency/bankruptcy of your buyer) whereas non-commercial risk (political risk)
-
Indemnity of up to 90%
-
Premium is a small percentage of annual insurable turnover
The key benefits.
-
Protection against non-payment of your trade debts
-
Protection in selling to new & unfamiliar markets or buyers
-
Protection to extend credit terms to your existing buyers
-
Protection to increase credit limit to your existing buyers
-
May be used as a financial management tool to obtain financing from banks or financial institutions
Types of risks covered.
Covered countries.
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Insolvency or Bankruptcy of your buyer
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Non-payment of goods accepted by your buyer
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Transfer delay, or delay in payment due to imposition of foreign exchange controls in your buyer’s country
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Cancellation or imposition of import license in your buyer’s country
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War and other disturbances in your buyer’s country which could affect debt settlement
It covers more than 164 countries worldwide.
50% subsidy of premium.
IE Singapore is subsidizing 50% of the insurance premium under the Trade Credit Insurance Scheme (TCIS), up to a maximum of S$100,000 to qualifying companies.
Terms & conditions applied.
What is not covered.
Trade dispute between the seller & buyer.
Ask for quote.
