Access to working capital is proving to be a challenge for many companies because of COVID-19. Diminishing revenues, difficulty in collecting account receivables, and increased bad debts are severely impacting cash flow, the ability to access cash from public debt markets, and opportunities to obtain new bank loans.
As companies emerge from the COVID-19 crisis, many will need liquidity to expand sales and invest in strategic growth. Trade credit, surety bonds/guarantees, political risk and structured credit insurance are established tools that can help companies facing liquidity challenges and provide their lenders the confidence they need to secure funding.
Our credit insurance solutions can help companies to:
We regularly provide insight and advice on credit, country, and performance risk issues affecting lenders, corporations, and public agencies so that business strategies can be quickly adjusted in light of changing circumstances.
Consider use of trade credit insurance to secure corporate supply chains via receivable or payable finance programmes.
Consider use of surety guarantees to replace other forms of collateral (such as bank lines) to increase lending limits or reduce regulatory capital.
Consider use of non-payment insurance or bank surety syndication, which can dilute concentration levels within lenders’ credit risk exposure — whether to individual borrowers, industries, or countries — enabling them to lend more to companies.