SME credit insurance service launched

SME credit insurance service launched
Aon and Euler Hermes UK respond to a growing demand

With insolvencies set to increase in 2009, some 20% more of SMEs have turned to credit insurance this year to protect their balance sheet than in 2007. In response, the UK’s leading credit insurance broker Aon Trade Credit has launched Aon Tradeability. Dedicated to the smaller business, the new “one-stop-shop” service provides insurance cover for 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% 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, partnering with the UK’s largest credit insurer Euler Hermes UK, has created a simple and straightforward solution to support and underpin SMEs’ credit management. The service comprises:

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, said: “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.”

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