A bulletin from Aon’s London office notes that “with insolvencies set to increase in 2009, some 20 percent more of SMEs have turned to credit insurance this year to protect their balance sheet than in 2007.”
Aon’s Trade Credit division has launched “Aon Tradeability.” The bulletin describes the new offering as “dedicated to the smaller business,” and providing a “one-stop-shop” service, covering “bad debt, knowledge on customers’ ability to pay and a route to additional working capital finance.
“The insolvency rate for small companies is expected to rise by 41 percent by the end of 2009*. SMEs are facing a vicious circle of customer insolvency and their inability to pay invoices; in turn meaning suppliers themselves will be unable to sustain a viable business when credit is scarce.”
Aon explained that, in partnership with the UK’s largest credit insurer Euler Hermes UK, it “has created a simple and straightforward solution to support and underpin SMEs’ credit management.”
The service comprises the following:
— credit insurance to protect against bad debts
— dedicated SME service team to support the company’s credit management function
— recommendations on enhancing current credit procedures
— assessment and credit rating for all customers
— specialist advice on credit limits and claims
— online access to customer information
— debt collections.
Elizabeth Jenkin, director at Aon Trade Credit, commented: “Today’s volatile economy means SME balance sheets are under pressure from customer defaults, as well as more restrictive bank lending. We wanted to create a simple product to give peace of mind, whilst developing a service that reinforces the credit management function. While we’re offering an accessible and cost effective solution, we’ve brought in the best bits of the service we offer to our larger clients, including access to customer insight and specialist advice on setting appropriate credit limits on your customer base.”
Source: Aon – www.aon.com
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