Credit Insurance

No Cost – No Obligation – Fast Turnaround

Full national coverage

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Why choose Abacus?

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Our Partnership

We work FOR you – not for the insurers. By choosing Abacus, you gain a trusted partner and the benefit of years of industry experience at no cost to you.

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Dedicated Contact

From the initial consultation, you’ll meet with the people who will actually be responsible for managing our partnership. They will get to know your business intricately as to best represent you in the market.

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No cost - No Obligation

We are confident that you will see  fantastic benefits in partnering with Abacus. However, if for any reason you decide not to proceed with a policy via Abacus – we simply shake hands and walk away. Don’t forget – our services are 100% free to you.

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Whole market access

Abacus has access to the whole market. Rather than just approaching 1 insurer for a quote, we do all the hard work for you. This ensures you benefit from the best combination of cost and cover.

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Broker VS Direct?

Via Abacus

  • Impartial account manager
  • Access to 14+ insurers
  • Works for you
  • Pre-vets and submits claims
  • Finds you the best deal
  • Negotiates renewal
Popular

Direct with Underwriter

  • Biased account manager
  • Access to only 1 insurer
  • Works for the insurer
  • Submit all claims yourself
  • Only one quote available
  • No competition on renewal
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What is Credit Insurance?

Read more below about Trade Credit Insurance and how it could benefit your business
What is it

Credit Insurance, also known as bad debt protection, trade credit insurance, debtor protection – repays you in the event of non-payment of invoices for goods or services. This can be in domestic and/or export markets.

Buyer Information

Beyond replacing crucial lost capital on your balance sheet, A credit insurance policy also gives you access to a wealth of quality financial information to enable smarter decisions prior to extending credit terms to your customers.

Credit Control

A credit insurance policy is very much a ‘LIVE’ product that can (and should) become integrated into the finance and sales functions of your company. It is unlike most insurances that are simply there if ‘the worst happens’. 

Debt Collection

Many insurers will include debt collection and/or options for legal services within their policies. This allows you to utilise their often local expertise which enables you to concentrate on the more important things in your business.

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Policy Types

Read more below about the 4 main types of Credit Insurance policy

Whole Turnover

-Protects whole ledger

-Covers insolvency and default

-Excess usually £500-£1000

Single Risk

-Covers single debtor

-Stricter underwriting criteria

-Minimum premiums 

Key Account

-Typically 2-25 debtors

-Covers insolvency and default

-Pick and choose your debtors

Excess of Loss

-For large turnover companies 

-Excess £25k-£500k typically

-Insurer underwrites your credit control procedures 

Credit Limit Monitoring

Dedicated Policy Manager

Bespoke policies to suit you

Satisfaction Guaranteed

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Trade Sectors.

Abacus work with clients across a multitude of sectors. Covering both goods and services, we are able to structure a policy that mirrors the nuances within your particular industry.
Below shows some of the sectors that we work in:

One of the most insured sectors, the Recruitment policies can include Unsigned Time-sheets, Pay when paid contracts and facilitate the use of RPO’s/Consolidators. With many recruitment firms showing sins of significant growth, now is an ideal time to evaluate the strength of your ledger.

The most insured sector for Credit Insurance. With recent high profile failures such as Carillion, the need to insure against an ever expanding supply chain has never been greater. We have the ability to cover Retentions, Pay when paid contracts, Stage Payments, JCT, Pay when certified and Applications for payment amongst other things.

Credit Insurers meet regularly with top level management at large retailers to better understand their financial and future plans, to allow more accurate credit limit decisions. The shift to online, and changing consumer habits has meant that the sector is challenging, however the market’s ability to be close to the retailers CFO’s and MD’s has meant that difficult limits are still possible.

Small margins are par for the course in the Gas, Oil and Fuel sectors. Which means the impact of bad debts can be monumental. Whether you are providing fuel cards, trading, bunkering, processing or distributing – we have you covered.

Whether you supply into the wholesale sector, manufacture your own goods, distribute or are involved in the supply chain in the food and drink sectors, recent high profile failures have shown how volatile the industry can be. Talk to us today and receive a free appraisal of your biggest/riskiest clients and see if a Credit Insurance policy is right for your business.

Whether it is supplier default cover, customer default cover, or a full supply chain solution, Abacus can help.  Hard and Soft commodities can come with extreme volatility and therefore the ability to mitigate many of the inherent risks, often makes the trade more easy to finance.

Looking for ways to ensure your investments are more secure in the short-mid term? Most B2B companies have around 40% of their assets sitting in their outstanding ledger. How would you/your investors feel if their funds could be made more secure? Would this open up different institutional investors for you to attract? Could you offer better returns with a ‘credit protected’ ticket? Talk to us about potential options. 

In a fast paced, constantly evolving sector such as this, you need to ensure that your broker and insurer design a policy that can evolve with your business. Whether its the risk of forward booking more traditional ad space, or working with ad networks or social media/branding agencies – Abacus can find a solution!

We appreciate that margins can be extremely tight in this sector, whether you are a Tier 1 or 2 Reseller or a Distributor.
Abacus’ extensive knowledge of the market and sector can help ensure that any non payment issues are fully covered with a bespoke policy.

With traditionally low margin/high volume business, the impact of a bad debt could be catastrophic. Increasing fuel costs, uncertainty around Brexit, and many new entrants into the market mean that the sector certainly comes with its challenges. Let Abacus remove some of those challenges for you.

TIRED OF SCROLLING?

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Why should I insure?

Below are some of the reasons why you should consider insuring your debtor book
Business
Growth

If you restrict trade with certain clients based on external credit reports or other reasons, you can ‘lay off’ this risk to the insurers. Often they will be able to support far greater limits, allowing you to increase profits, safely.

Peace of
Mind

What would happen if one or two of your clients didn’t pay you? Could you survive financially? How many years would this set you back? Would you need to make redundancies? Take the stress away and talk to us today.

To Aid
Funding

We work with many funders and banks who don’t have the internal credit appetite to support their clients ambitions with their current or future ledger. By utilising a policy via Abacus, your funder can fund up to the credit limits we put in place for you, whilst having the comfort they will be paid back in the event of non-payment.

Exporting
Support

Whether its new territories that you are looking to infiltrate, or this is your first foray into exporting, you can utilise the insurers network of offices (often in over 50 countries) to assess your overseas customers or prospects. Many will also offer overseas debt collection as part of the policy.

Capital
Relief

Banks and financial institutions have come under increasing pressure to maintain specific capital to protect against financial volatility. By taking out a Basel III compliant insurance policy, the risk is transferred from corporate default, to insurer default and means the bank do not need to hold such large capital reserves.

Concentration
of Risk

Do a small number of clients make up a large % of your turnover? You’re not alone…. This can have obvious issues with funding, cash flow and the ability to sleep at night. Don’t worry we can help with all of the above. Contact us today to talk through your options.

This sounds interesting......

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Insurers we work with

AIG have an array of policies suitable for companies of £10m turnover and above. They also offer non-cancellable limits and are very active in the trade finance and banking sectors. Whole turnover, Top-up and Single-risk policies are also available.

Atradius are the oldest commercial credit insurer. Their strengths lie in their historically strong export capabilities with offices in over 50 countries. As one of the top 3 insurers, they are also able to structure new products and policies including top-up and non-cancellable cover.

Chubb are experts at Excess of Loss (catastrophe) cover. They look to underwrite the insured client and often use the clients own credit procedures to set internal credit limits. These often come with larger excesses such as £100,000 but can run into the £millions. Suited more at larger corporate businesses but still offering a great service.

Another member of the ‘Top 3’, Coface also has a strong export presence with direct or indirect business units in over 200 countries. From SME through to Multi-national, they have a great range of different policies to suit, include non-cancellable, top-up and cover for disputed debts.

Euler Hermes holds the number 1 spot based on market share with over 30%. Known previously as ‘Trade Indemnity’, they have strong international reach and also perform fantastically on domestic policies. With a huge team of sector specific risk analysts, Euler Hermes pride themselves on the ability to structure policies that suit even the most challenging clients.

Markel also target the large Corporate and Multi-national clients that have advanced credit control procedures. Their strength lies in the ability to offer large limits, top-up and syndicated limits to large clients. Often with XOL (excess of loss) structures attached – so the client shares a larger element of the risk.

Nexus Trade Credit is an underwriting partner of the Nexus Group – One of the largest MGA’s (Managing general agents) in the market. Their capabilities and expertise extend to include Whole turnover, Excess of Loss and Single risk policies. 

One of the largest ‘multi-line’ insurers in the world, QBE offer solutions from SME through to large Multi-National clients. They offer Whole turnover, Selective account, Single risk and Top-up amongst their product suite.

Previously knows as HCC (Houston casualty company), Tokio Marine bought the business and rebranded in 2005. Along with this came major investment, including a large onus on staffing. TMHCC offer a full suite of products to include Whole turnover, Single Risk and non-cancellable limits. 

Another large, well known ‘Multi-line’ insurer, Zurich offer Credit Insurance solutions tailored at the mid-market sector. Their ability to offer policies that leverage their international network of offices plays to their strengths. Whole turnover, Excess of loss, Top-up and selective account solutions are all available.

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FAQ

Most frequent questions and answers

Premiums for Whole Turnover policies typically can range from 0.1% of turnover up to 1%. Pricing will be primarily based on Trade sector, Turnover and Bad debt history.

By covering your entire ledger, you’ll usually benefit from a better premium rate.

However, there are occasions where you’ll only want to cover key customers or particular parts of your business. We are there to guide you through all of the options available.

Absolutely. However Single-Risk cover attracts a far higher premium rate – usually anywhere from 1% up to 8-9% in some extreme cases.

Usually funding companies will charge you based on your VAT inclusive turnover, so policies are usually 20% more expensive to start. Also, by utilising the knowledge and expertise of the insurers, you’ll often get far more accurate and up to date credit limit decisions. You’re also less likely to hit ‘capacity’ issues by seperating your insurance and funding as you are treated as a separate policyholder, rather than a ‘sub-policy holder’ of your funders ‘master policy’.

The majority of the insurers will ONLY deal with policies through brokers. They understand the service and expertise that we bring to the table greatly enhances the experience and helps to ensure that clients get the most from their policies. Contrary to popular belief, you won’t get a cheaper price dealing direct either – and as ABACUS don’t charge you a penny – what are you waiting for? CALL NOW

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