Commercial Receivables Insurance,

Unpaid debts and bankruptcies are expected to increase as economic growth becomes increasingly complex for companies. You can benefit from Trade Receivables Insurance to secure your term receivables.

Trade Receivables Insurance is a system that guarantees your receivables to protect your cash flow. Our global intelligence network keeps you up-to-date so you can trade with confidence by tracking the financial status of your customers.

The ultimate purpose of credit insurance, which compensates for losses due to non-payment of a commercial receivable, is to protect you against large-scale losses.

In case of bankruptcy or default of your customers, compensation is paid.

If you are considering whether you need trade credit insurance, we recommend that you first answer the following questions by yourself.

Have you ever experienced a loss of receivables, especially with suppliers abroad?
Do you regularly sell to new customers and markets?
Do you currently use asset-based financing or factoring?
Worried about Credit or country risk related to the growth of your overseas customer base?

If these questions sound familiar to you, you are not alone. In fact, managing credit and counterparty exposures and excuses has become one of the biggest risks facing manufacturers, distributors and wholesalers in today’s global economy.

The reasons are clear. Although receivables are also the primary source of income, they are often the largest uninsured asset on a company’s balance sheet.

In addition, combined with the global economic crisis and domestic risks, it put accounts receivable at risk and restricted cash flows. Many companies are also entering new markets and expanding their supply chains across multiple regions—all of which further increases the need to protect themselves from the risks associated with their business debt.

To address these and other issues, HERMESS Management Consulting Trading & Finance provides customized solutions for trade credit insurance, helping companies manage their credit and counterparty exposures while supporting growth in new markets or with existing customers.

What is Trade Receivables Insurance?

An insurance product that indemnifies a seller against losses caused by a buyer’s non-payment of a commercial claim resulting from both bankruptcy and delayed default/slow payment.

What are the Benefits of Trade Receivable Insurance?

If we collect the benefits of trade credit insurance for your company in a few items or titles, we can list them as follows.

Open account guarantees the risk of non-payment of receivables arising from commercial activities. In export policies, political risks are covered along with the risk of bankruptcy and non-payment of debt.
The allocation of Credit Limits is based on analysis by risk managers with intelligence-based information and/or commercial experience.
In case of compensation, the collection/follow-up processing costs of the unpaid receivable are covered by the contract with the insurance company.
It maintains the receivable quality in the balance sheet assets and affects the profit/loss account.
The cost of credit management becomes certain before the start of the new accounting year, it can prevent large unforeseen losses
It affects the increase in sales with the new limits allocated from the insurance company. Increases turnover with increasing financial opportunities
Allows you to focus on the right customers with the database of Credit Insurers
Makes it easier to work with customers with small turnover and higher profit margins on a term basis.

Protect Assets Receivable and Support Growth

Our solutions ensure that accounts receivable are protected against non-payment due to the risk of slow payment, bankruptcy or foreign transfer. Collateral is designed to prevent catastrophic losses, reduce the risk of important payments and transfer the risk of bad debt issues.

Companies can also increase their bank finances to improve their receivables relationships, improve their balance sheets and access more capital at lower rates.

In addition, HERMESS Management Consulting Trading & Finance can support sales in new or riskier markets, grow existing accounts, and strengthen client relationships by assisting buyers with letter of credit requirements and other matters.

Use a Data-Driven Approach to Discern Risk

HERMESS Management Consulting Trading & Finance uses a detailed, data-driven approach to identify and measure risks in the trade credit insurance market. Our comprehensive financial analysis helps define the total cost of risk when using multiple loss reduction methods. We also conduct in-depth studies with credit, sales channel management, finance, Treasury and risk management to review existing practices.

Equally important is to consider the critical factors that affect the pricing and performance of the final solution. Other factors may include choosing between cancelable or non-cancellable programs, as well as considerations regarding current credit management processes and loss history.

Your Advantage with HERMESS Management Consulting Trading & Finance: Dedicated Experts Backed by Global Resources

For each client, HERMESS Management Consulting Trading & Finance provides a team of dedicated brokers, including a single point of contact empowered to provide ongoing policy and claims support. No third party or automated systems are used in any way. Instead, the HERMESS Management Consulting Trading & Finance team works closely with each client individually to understand their specific business needs.

For More Information About Trade Receivable Insurance

HERMESS Management Consulting Trading & Finance experts can provide organizations with the experience, tools and deep industry expertise needed to provide optimal risk management solutions for trade credit insurance.