With the Global economy reeling from the effects of the ongoing pandemic, the lines of open account credit available from the Trade Credit Insurance market and Company Information Providers on your Customers and even on your own Company may not be sufficient to support future needs.
As more and more companies file their statutory accounts, we will increasingly see the true impact of the pandemic on sales, gearing and profitability. In such circumstances where there has been a measured deterioration in the financial position of the business, the ability to secure open credit terms required to support future sales will become a real challenge and a source of frustration. In some cases, there may now be a need to pay for goods in advance. Which will have a negative impact on sales and profit margins.
So, What Can Your Customer or You Do About This?
Acting on your behalf, we can ensure that key Company Information Providers and Underwriters have the most up-to-date management information available, and therefore they are not basing their decision/opinion solely on the latest filed accounts at Companies House. Increasingly, both Underwriters and Company Information Providers need sight of the latest management financial information and a copy of an up-to-date cash flow statement. We will work with you to ensure that the information provided is up-to-date, accurate, provides narrative to key points and focuses on various key risk factors. Which may need addressing or clarification. This approach can assist us in securing an improvement in credit opinions available from the various providers.
Why Is Your and Your Customers’ Rating Important?
Securing an improved company rating and credit opinion on you and your customers, provides the open account credit lines to support future growth which, positively impacts the cost of sales, margins and available funding/working capital available for fund growth.
Does This Work?
Every day we work with our clients to secure up-to-date financial and non-financial information which is attributed to an increase in available open account supplier credit lines.
How Does It Work?
We establish the market’s current risk view on your company and if requested, your key Customers. We then agree what information is required by whom to increase the likelihood of a positive improvement (sometimes to ensure current ratings and credit opinions are maintained) in both the grade and credit limit/recommended contract value. We then monitor any ongoing changes to these grades/credit limit opinions and update you accordingly. This approach ensures that your Supplier obtains Credit Insurance cover or a credit opinion that is as positive as it can be.
What Do We Charge?
We charge an initial set-up fee to cover the cost of purchasing the various company status reports in order to generate a market analysis report. If we are successful in improving the grade and the credit limit, we will charge a flat fee charge of £750.
Please contact us if this is of interest and benefit to your business.