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Key Benefits of EH Partnership

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Key Benefits of EH Partnership

  1. 1. What assets are insurable and insured? There is a greater chance that a business will experience a loss within their accounts receivable than any other asset. Where does the A/R fall on a Balance Sheet? Typically represents 40% of a company’s assets Most vulnerable to unexpected losses Highly likely to be affected by business cycles Provides cash flow for the business Only under-leveraged asset Few companies can effectively compete without extending credit to their buyers Catastrophic Risk Protection Prevents disruption to cash flow and protects one of company’s largest assets Cap exposure to bad debt loss Reduction of risk of key account concentration levels Sales Expansion Expand sales into riskier or new markets Enhance a customer relationship by offering more favorable terms without additional risk Grow with existing accounts, offer open terms to new accounts Credit Function Support Provides a structure and discipline for credit decision making FAST fact-based credit decisions of customers, prospects, industries and countries Gain leverage over problem accounts by using underwriter’s clout and resources for collections Export Sales Protection Offer for open terms for entire year and eliminate need for letters of credit Political risk protection (currency, import/export changes, foreign government) Borrow against your export AR with your bank line of credit Bank Financing Enhance Lending Relationship... Eliminate concern on high concentration with key accounts Borrowing against export receivables More capital at reduced rates, taking full advantage of A/R Reduction in Bad Debt Reserves Frees up working capital Converts non-taxable deductible provisions into a fully tax deductible insurance premium Key Drivers for purchasing Trade Credit Insurance Is one of your Largest Assets Unprotected? Accounts Receivable (uninsured) Land & Buildings Machinery & Equipment Inventories Senior Executives Cash Andrew Rieke Euler Hermes North America 6215 S Oneida Way Centennial, CO 80111 Cell: 720-323-5944 Email: andrew.rieke@eulerhermes.com Phone: 303-221-1353

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