READ Credit Management Tool Like any other asset, accounts receivable requires safeguards, including sound credit management practices and insurance protection. History of CI – 1890 is when it started. 1960- Ex-Im bank, government involvement 1990-
- One of my favorite slides, usually when I am talking with someone they will point and say yah I took a hit on that one or yep we were surprised by this one. Each of these companies are household names yet have for one reason or another filed bankruptcy in the recent past……… - There is no such thing as we only sell to the best accounts and therefore we have no risk……tell that to the creditors of Enron, who’s the next one cooking the books or Owens corning, where's the next asbestos situation - The other problem is that when accounts of this size go down or any account for that matter, there is a ‘cash flow wheel domino effect'. when K-mart filed it affected an est. $4 billion in cash flow…forced companies like Fleming to file and when Fleming and their 29 subsidiaries filed it forced others and so on and so on. You may be doing your due diligence with your key accounts but how can you know what is going on down stream with you key accounts’ key accounts? (Next Slide)
READ Risks are Rated The first thing we do with a prospect’s list of buyers is assign risk Ratings to each of your customers. The “risk rating Scale’ goes from 1 to 10 with the Walmart’s of the world being1’s and completely dead companies (chapter 7’s0 being 10’s. Companies with RR’s of 8 & 9 have either filed formal Chapter 11’s or are in similar conditions but without the formal filings……….we don’t approve buyers with RR of 8 thru 10. The 6’s & 7’s are the “very difficult buyers” which make up the majority of the portfolio which produces most of the loss payments to insureds. While the last sentence is a mouthful (and I’m not certain to be 100% grammatically correct), what I am basically saying is that “6’s & 7’s” are the buyers that default most often by a very large margin. We make the world’s best credit decisions …..allowing our Generacs to make the world’s best business decisions. Policy is Dynamic Policy Payout
Waterfall view of timeline
Euler Hermes 2012
Name Phone First.firstname.lastname@example.org eulerhermes.usEuler Hermes Americas Credit Insurance Overview
As you would expect from the largest credit insurer in the world, Euler Hermes hasTHE best credit department in the world because we are out of business if we don’t.And guess what, we use credit insurance too, via re-insurance.Why…because like (our customers and) your customers, we want to grow ourbusiness by taking on new clients and risk. But no matter how good we are at creditdecisions, we can’t stop bankruptcies and losses from occurring.We hate writing those premium checks just like any other business but we continueto do so because we’ve realized over 117 years of business that no matter how goodwe are, surprises happen. Joe Ketzner We thank you for the opportunity to present our company and our services. We look forward to becoming a trusted and important resource.