Risk & Business Magazine Lloyd Sadd Insurance Brokers Fall 2015

Using Insurance to Grow Exports... Domestically and Internationally BY: GRAHAM MacLACHLAN, MANAGING PARTNER, GLOBAL TRADE CREDIT R isk & Business recently conducted an interview with Graham MacLachlan, Managing Partner of Global Trade Credit to provide some insight into how to use “Insurance to Grow your Exports” and maximize the value of a Credit Insurance Policy with the Broker Advantage. 3. Credit Enhancement – Provides instant professional credit protocols. • Supports a company’s accounts receivable management and validates credit protocols • Provides credit limit for a customer and monitors portfolio performance during the policy period Q: What is Trade Credit Insurance? A: Trade Credit Insurance is also commonly referred to as Accounts Receivable Insurance is an insurance product used as a financial tool which manages both commercial and political risks that are beyond a companies control. • Access to readily available to domestic and international credit reporting information Q: Why Companies buy Trade Credit Insurance? 4. Increase Sales – Use extended terms to secure new business. A: There are a number of reasons that Companies would consider buying Credit Insurance; however it is unique for each firm based on their own personal circumstances. Here are five main reasons any company would consider coverage each individually or any combination of the following reasons. 1. Risk Mitigation – To secure your balance sheet from potential loses. • The Insurer acts like an extension of your Credit department reducing your administrative costs. • Increase sales to new and existing customers • Helps to establish new foreign markets to increase export sales • Provides a competitive advantage by having the ability to offer extending terms 5. Corporate Governance – Use the policy to demonstrate professional protocols. • Cost of Insurance in most cases reduces your bad debt reserve for Private and Public companies • Protects against the risk of a customer on cre

Risk & Business Magazine Lloyd Sadd Insurance Brokers Fall 2015 | Page 30