understanding your trade credit risk atlas isk

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info@atlasrisk.com

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: info@atlasrisk.com

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.