Credit Insurance for single contracts

Coverage remains fixed throughout the policy period, with non-cancellable credit limits, which differs from short-term credit insurance, providing businesses with consistent financial security for their contractual agreements.

Supply and installation of LED lighting

A LED lighting supplier were awarded a £1,500,000, 18-month, contract to replace existing lighting systems with energy efficient solutions, in all of the buyer’s locations, nationally.

Risk: Potential payment default and buyer failure before physical works started (pre-credit risk) during the manufacture and purchase of materials stage.

Solution: The business secures Medium Term Credit Insurance, covering 90% of the outstanding balance, including a loss payee provision for the company’s bank who were financing the project.

Outcome: If the buyer defaults, the company is covered against non-payment of the insured receivables and their work in progress costs.

Automotive parts manufacturer

A manufacturer of automotive parts secures a £2,000,000 two-year contract with an overseas distributor, with payment terms of 40% upfront and 60% phased over three years.

Risk: Potential payment default or delays due to international factors.

Solution: The part manufacturer purchases Medium Term Credit Insurance covering 90% of the contract value, including Political Risk cover.

Outcome: Insurance protects against default, ensuring the manufacturer's cash flow remains stable and operational disruptions are minimised, enhancing financial resilience in their international trade.