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understanding your trade credit risk atlas isk
t + 44 (0) 161 212 1700
f + 44 (0) 161 212 1701
Many successful
companies use credit
insurance for protection
and growth, but credit
insurance is not right
for everyone.
Secure Growth
www.atlasrisk.com
Supporting sales expansion
Credit insurance protects you against a
bad debt as a consequence of a
problem with a customer or their
country.
The ability to match unsecured, riskier terms of payment
being offered by competitors
Sales Directors traditionally see credit management as a
sales-limiting exercise. However Sales Directors among our
clients have benefited from:
Typically, our existing base of Financial Directors find that credit
insurance removes the personal pain of:
Justifying when credit can’t be granted to the Sales Director
Analysing customer balance sheets to set and maintain
internal credit limits
Credit Controllers have found their jobs made easier through:
We help many businesses to avoid bad debts, protect their
balance sheets, and secure the future. However, we never
assume that credit insurance is right for your business or that
Atlas Risk is the right provider. We seek to understand your
credit risks, identify what concerns you, and determine whether
you believe credit insurance is right for you. If this is the case,
and Atlas Risk is a fit for your business, we will work together
to help you find the right solution.
The constant monitoring of all of their customers by their
insurer, who are in many cases in receipt of regular
management information and payment experience that
isn't in the public domain. This acts like an early-warning
system, helping to avoid potential problems.
Sales expansion following the placing of a credit insurance
program which has allowed previously strict credit
management to increase credit limits (as a high percentage
of risk is transferred to the insurance market). In these
circumstances, the margin on the increased sales easily
covers the cost of the policy.
Using the threat of the consequences of being obliged to
inform their insurer (when a debt becomes significantly
overdue), which can persuade the buyer to pay!
Who we helped
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Nervous about exporting?
Case Study
Our client, a long-established carpet manufacturer keen to
develop export markets for their product, recently engaged an
export sales manager. The Finance Director had a degree of
concern agreeing credit limits on companies from around the
globe with no previous experience of a business relationship.
A credit insurance policy covering the exports of the business
was put in place, and has provided invaluable expert information
to support the FD, along with the Sales Manager's
recommendations, in deciding the appropriate level of credit to
be allowed.
Worried you're agreeing large credit limit exposures that may come back tohaunt you?
Case Study
Our client is a multi-million pound supplier of poultry to the
main supermarket retailers. They recognised that their exposure
to the processing company (that their birds pass through before
hitting the shelves for the consumer), was uncomfortably high
and stood out as a large and concentrated risk on their debtor
listing. The Financial Director and the Owner decided to seek
credit insurance cover in order to ensure that the business was
properly safeguarded and that they could both 'sleep easy' at
night.
Finance Director
Discover why some of our clients use credit insurance
Whether you're considering exporting for the first time, or
selling to new customers or into new markets, there is naturally
a concern about getting paid and how to assess the
creditworthiness of these customers. A credit insurance policy
will give you access to the insurer's extensive database of
worldwide companies, and if a credit limit is granted you can
support fledgling customer relationships and build trust as well
as sales.
Our aim was to expand our sales
internationally and we acquired an experienced
Sales Manager to do so. I was reluctant to agree
large limits on customers I did not know but the
credit insurance limits granted made my job
easier
Most businesses will set internal credit limits for their customers
and on occasion the levels agreed can rise to levels far higher
than your customer's balance sheet would support. This
decision may fall to you and if you call it wrong and the buyer
fails you may then have the unenviable task of reporting this to
the Board.
Our reasons for buying credit insurance
have always been straightforward; a very large
exposure and level of concentration gave us
cause for concern and we thought it prudent to
transfer this risk to the commercial insurance
market.Finance Director
Credit Control & Data Analyst
Credit and Treasury Manager (EMEAI)
Who we helped
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Discover why some of our clients use credit insurance
Suffered a bad debt and afraid it might happen again?
Case Study
Our plc client, a provider of communications solutions across
the UK suffered a significant bad debt with the failure of a
notable US bank in 2008/09. They purchased a policy to
transfer the majority of the credit risk from their balance
sheet to an insurer.
Bad debts can strike at any time. Even global household
names can fail. In the 'worst case' scenario, the consequence
of a bad debt could be terminal for your own business.
Smaller bad debts can still leave a gap in your cashflow; worse
than that may be the fact that you've lost a customer and
hence their future purchases. With a 5% profit margin, a bad
debt of £50,000 will need replacement sales of £1m just to
ensure your business 'stands still', let alone grows!
We always viewed our debtor book as blue
chip until we suffered such a loss. Our policy
protects us from a catastrophic loss with a very
reasonable self-insurance level and a
cost-effective premium.
Frustrated you’re losing sales to competitors offering more relaxed terms of payment?
Case Study
Our client is a manufacturer in the chemical sector, and supplies
end customers and distributors in some difficult export markets.
They were experiencing pressure from foreign competitors who
were offering open account terms in some of these markets.
We were able to obtain cover on a very specific basis for a
handful of named customers, allowing our client to offer open
account terms, secure in the knowledge that the risk of
non-payment was covered.
You may use more secure Terms of Payment than
'open account' with some customers, and this is particularly
common with overseas buyers. Do you think your existing sales
could be eroded, or are you missing out on opportunities where
your foreign competitors may well be offering open account
terms?
Competitors from the Far East were trying
to establish relationships with our customers
and despite having superior product quality
and more reliable service, we needed to be seen
to be flexible on our terms of payment. The
credit insurance policy has helped us to do so
but at the same time we feel we have mitigated
the risk of non-payment successfully.
Managing Director
Chief Executive Officer
Who we helped
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Discover why some of our clients use credit insurance
Already credit insured but frustrated that it’s no longer meeting your needs?
Case Study
Our client is a 'household name' that manufactures wallpaper,
and invited us in for the reasons outlined above. We spent the
first 12 months working with the existing insurer to improve
gaps in the required credit limits for new territories. Despite this
effort we brought a competing insurer to the table who won
their business, through agreeing difficult credit limits in difficult
markets, based on scarce financial information but positive
customer relationships and background. Where this insurer was
unable to cover some markets, we were able to bring the
export arm of the Government in to help. Facilitating safe
exports for our client saved jobs in the North West.
Frustrated that the current solution no longer meets your
needs? Annoyed that your existing broker and/or insurance
company aren't listening to you? Maybe it is time for fresh
ideas, or a different perspective?
Atlas Risk have more than proved their
worth by increasing the level of cover across
the ledger, particularly in those existing difficult
markets where there was insufficient cover in
the past, and challenging new markets like
Libya.
Irritated the bank is forcing you to take their credit protection?
Case Study
the credit limits on their largest customers were restrictive, and
they couldn't draw down finance on the export element of their
ledger, hampering the company's growth. Despite looking more
expensive 'on paper' the credit insurance solution solved both
these issues.
Our client had a non-recourse finance facility and found that
When providing finance some banks may insist you include their
credit protection. Do you feel they exert too much control over
your business? Obtaining a separate policy from an insurance
company can result in increased credit limits, thereby improving
the levels of finance available. It can also avoid the possible
conflicts of interest that arise from an invoice discounter
financing invoices set against credit limits set by the invoice
discounter. Having 'all your eggs in one basket' is seldom in
the interests of the customer. Leave lending money to the
banks, and assessing and taking risk to the insurers
Separating the credit insurance from the
banking facility enabled me to judge each
on its merits and provided greater flexibility
with regard to choice of provider. In addition,
the innovation from the insurer which
provides additional cover where required has
provided an immense boost to the sales
performance.
Meet the team We are a friendly dedicated team, here to help you find the right solution
Colin entered the industry in 1990, following a
degree in International Business Studies with French.
He spent 11 years with Marsh, initially fulfilling
client management roles and later successfully
moved into New Business Development and became
Assistant Director. Colin is one of the founders of
Atlas Risk, and is responsible for his portfolio of
clients and new business acquisition.
Colin Skinner MIEx
Director
Mark Kenny
Director
Dale Wilson
Director
Mark entered the industry in 1983 with a degree in
Law. He spent 15 years with AON, and then 2 years
with Marsh, as Associate Director within both
organisations. Mark is one of the founders of Atlas
Risk, and is responsible for his portfolio of clients
and new business acquisition.
Dale entered the industry in 1994 with a degree in
Information Technology. He spent 5 years with
Marsh, initially spending a year at a major client as
in-house broker and latterly as an Account Executive
with a portfolio of clients. Dale is one of the
founders of Atlas Risk and is responsible for Finance
and IT alongside helping with client servicing and
business development.
t: + 44 (0) 161 212 1700 | f: + 44 (0) 161 212 1701 | e: [email protected]
Piccadilly House, 49 Piccadilly, Manchester, M1 2AP
Atlas Risk Management Ltd
www.atlasrisk.comunderstanding your trade credit risk atlas isk
You might be unaware of credit insurance, you may
have had a poor experience in the past, or you may
be very happy with current arrangements but not up
to date with recent developments.
Whatever your situation we would be keen to hear
from you.
From the outset we found that Atlas Risk ensure that they
strive to fully understand our business in order to provide us
with a solution that works. Not only have they driven the credit
insurance market place to underwrite large limits on some
problematic buyer risks, but they have also acted as advisors and
coordinated the dissemination of our own financial information
to help maintain our supply channels. They have provided a
professional but also pragmatic approach to the market place,
which is extremely refreshing in such a regimented industry.
Financial Director (Home Entertainment products)
Alison McLean
Associate Director
Joe Wilcox
Associate Director
Andrew Coakley FCICM
Account Executive
Paul De Ath
Telesales Executive
Alison entered the industry in 1995,
joining the insurer Atradius where she
held roles of Business Development
Manager, Account Executive, and then
Account Manager looking after a large
portfolio of clients. She joined Atlas
Risk in 2007 and is responsible for
client servicing.
Paul has a wealth of experience in
telesales across various industries,
including general insurance and trade
credit insurance schemes. He worked
for a company that Atlas Risk
contracted for telesales up until 2009.
He joined Atlas Risk in July 2015, and
is responsible for the initial stages of
new business acquisition.
Joe had extensive experience in
banking and leasing before entering
credit insurance in 1993. After 3 years
at AON, he was Regional Director of
HSBC’s credit insurance arm in
Manchester for 13 years, before they
were sold to Marsh in 2010. He joined
Atlas Risk in 2013, and is responsible
for his portfolio of clients and new
business acquisition.
Andrew had extensive experience in
credit management within various
trade sectors prior to entering credit
insurance in 1997 at HSBC. He spent
13 years with HSBC and a further 5
with Marsh after they acquired HSBC’s
broking arm in 2010. He joined Atlas
Risk in 2016, and is responsible for his
portfolio of clients and new business
acquisition.