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Coface Credit Insurance 2011


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Coface Credit Insurance 2011

  1. 1. Coface North AmericaCredit Insurance 08 10 2011W. Marc Gurley
  2. 2. Coface: Worldwide Trade Facilitator● Founded in France in 1946; International expansion in the 1990s  Over 60 years experience in credit risk protection● Subsidiary of Natixis; ultimate shareholder is BCPE  BCPE is the second largest French bank group with over 6 million customers● Rated: AA- (stable outlook) by Fitch A2 (stable outlook) by Moody’s Coface facilitates business-to-business commerce worldwide, offering solutions to all companies – whatever their size, nationality, or business sector – for managing and protecting their accounts receivable.2 Coface Insurance
  3. 3. Extending credit is a fact of life Extending credit is a fact of life for most companies.  In order to compete to win business, many companies extend credit to their customers, at the risk of not getting paid. Sound credit management practices are necessary to ensure your cash flow and profitability.  Credit investigation before the sale  Continual monitoring of the health of your accounts  Swift action at signs of financial stress Even so, the very best credit controls are sometimes not enough…3 Coface Insurance
  4. 4. The end of the latest credit crisis only starts the clock for thenext credit crisis 4 Coface Insurance
  5. 5. Because trusted names can and DO go bankrupt!5 Coface Insurance
  6. 6. Protect a valuable asset – Your A/R Accounts receivable represent 40 to 70% of a company’s assets● Few companies can compete without extending credit to their customers.● Most companies insure their buildings, machinery, staff and inventory but not their A/R – which provides the cash flow for the business.● Receivables are vulnerable to unexpected bad debt losses and fluctuations in business cycles.● A company operating with a 10% margin would have to make an additional $1 million in sales to make up for a $100,000 credit loss.6 Coface Insurance
  7. 7. Credit Insurance What is credit insurance?● Your domestic and international accounts receivable protected against unexpected bad debt loss due to insolvency or protracted default (slow pay) of your customers.● All or a majority of your business insured.● Online portfolio management system allows you to request, change or cancel coverage with ease.● File a claim when a customer is insolvent, or after an established amount of time in cases of slow pay.● With coverage in place, conduct your business as normal and benefit from added value credit analysis and collection services.7 Coface Insurance
  8. 8. How credit insurance works Credit insurance flowchart8 Coface Insurance
  9. 9. Credit Insurance – AdvantagesCredit insurance can play several significantroles for your company: ● Safeguard one of your largest assets  Credit insurance protects against a devastating loss to an unprotected asset - your accounts receivable. ● Support your sales goals  Expand into new and unfamiliar markets much more comfortably.  Ability to generate sales by extending larger lines of credit than you might normally offer.  Become more competitive compared to letters of credit by offering open account. ● Strengthen your credit risk management controls  Credit underwriters perform detailed credit analysis on your customers, lowering your credit investigation costs.  Credit insurance allows you to cap exposure to bad debt losses.9 Coface Insurance
  10. 10. Credit Insurance – Advantages Receive better financing terms with insured receivables  Improve borrowing power and increase available capital when your receivables are insured.  Increase likelihood of bank lending against foreign receivables.● Tap into collection services  A credit insurance policy also provides professional collection and litigation assistance.10 Coface Insurance
  11. 11. Business Lines Coface delivers tools that enhance and support a company’s credit management practices:  Accounts receivable protection  Export and domestic credit insurance  Political Risk risk guarantees Corporate ratings and business information  Accounts receivable management and debt collection At every step of its development a company can choose services adapted to its needs by either using them separately or combining them to create its own tailor-made solution.11 Coface Insurance
  12. 12. Key figures  €1,622 M in turnover (2010)  Direct presence in 66 countries  Coface offer available in 95 countries in total  135,000 clients worldwide  €374 billion insured invoices  55 million rated companies  6,400 employees worldwide12 Coface Insurance
  13. 13. A main asset – our Global Network Coface provides local service to clients in 95 countries representing over 80% of world trade via:  Direct presence in 66 countries  CreditAlliance partners in 29 additional countries Coface makes this network available to its clients. Its guarantees and services comply with quality standards and adapt to trade evolutions worldwide thanks to information and expertise exchanges.13 Coface Insurance
  14. 14. A strong international presence worldwide Germany Austria Bulgaria Belgium Cyprus** Denmark Croatia Spain Finland France Hungary Estonia Kazakhstan Ireland Latvia Italy Lithuania Greece** Malta** Liechtenstein** Poland Luxembourg Czech Rep. Norway Romania Canada The Netherlands Russia United Portugal Serbia States United Kingdom Slovakia Mexico Sweden Slovenia Switzerland Turkey Bahrain** Ukraine Iran** Algeria Israel Benin Jordan** Australia Argentina Burkina Faso Kuwait** Brunei Brazil Cameroon Lebanon** China Chile Ivory Coast Djibouti** Korea Colombia Egypt U.A.E Hong Kong Costa Rica Gambia** Libya** India Ecuador Gabon Oman** Indonesia** Paraguay** Guinea** Qatar** Japan Peru Mali Syria** Malaysia Uruguay** Morocco Yemen** New Zealand**Coface in the world Venezuela Mauritania** Pakistan** Niger** Philippines** Directly present in 66 countries Senegal Singapore Sudan** Taiwan Chad** Thailand Indirectly present in 29 Togo Vietnam countries via the CreditAlliance Tunisia** network** South Africa Uganda**14 Coface Insurance
  15. 15. Thank youW. Marc GurleyAgentE.W. Droppa & Associates, LLC.Exclusive Agent for Coface North America5180 Park Ave., Ste. 120-AMemphis, TN 38119Office: 901-213-2033Cell: 901-336-2781Email: marc_gurley@coface-usa.com15 Coface Insurance
  16. 16. Trade Credit Insurance 06 11 2011Additional Details– Agent name, or prospect name