3 ways that we work with Banks/Funders

Credit Insurance Meeting

Below are the three main ways in which we work with Banks and Funders:

  1. Corporate/Commercial Bank Relationship managers
  2. Invoice Finance/Factoring BDM’s or Corporate Managers
  3. Banks/Funders themselves

If you fall into any of these categories then please continue reading!

1.Corporate/Commercial Bank Relationship managers

Most banks are now acutely aware of risk within their portfolios, and are looking for ways to mitigate these risks, whilst still maintaining decent margins on their lends.
Whether this is straight up lending facilities, structured lending, revolving credit facilities, or Invoice finance.
However, there is often a chicken/egg scenario where they look to write higher levels of business, to increase profitability, but are restricted by internal credit appetite.

Thankfully, this is where Abacus can help.

We are often asked by Corporate and Commercial managers at banks to provide the risk mitigation tools to allow them to complete lending deals.

The usual process is that they are looking at the overall risk profile of one of their customers, and one of the key risks sits within the customers own sales ledger.
Whether the issue is DSO, ledger creditworthiness or even concentration of risk, we are asked to assist.

This usually involves a quick phone call or email to one of our brokers, highlighting the key risks, the speed in which they need this turned around, and the details of the deal.
We are then able to structure a policy which covers either the whole ledger, specific risks, or a selection of key clients.
The bank can be nominated on to the policy, to ensure that they retain control of any claims that are paid, as a result of non-payment.

We know that not all enquiries will end with a positive result, but our process is quick and efficient and allows the Bank to ensure they have exhausted all options before potentially declining a customer.

If this sounds like it would benefit you – GET IN TOUCH

2. Invoice Finance/Factoring BDM’s or Corporate Managers

As somebody working in an IF/ID/Factoring environment, you’ll know 2 things.

1 – It is a competitive market
2 – You’ll usually have an ‘in-house’ bad debt protection product

We regularly take calls from funders who are growing frustrated with their own bad debt protection credit appetite. The ‘aggregated’ limit assigned to your company has been used up on other clients, or the insurer who backs your policy is not keen on a particular trade sector or risk.

So where do Abacus fit in?

These calls or emails that we receive are usually very short, and along the lines of:

‘We need 500k on ABC Ltd – can you do it?’

A few quick phone calls to the market and the response is back with the funder.
We understand that you need to move quickly, and our response times are lightning fast.

If a positive response, your client fills out a brief enquiry form, we get some quotes back and you can go away and structure your deal with a bespoke policy direct from one of the insurers.

If a negative response from the market, you at least know you’ve done everything you can do secure the deal.

To check any risks that your company’s current policy isn’t supporting, just
EMAIL US the details and we will respond with an impartial view from the market.

3. Banks/Funders themselves

We can help in a couple of different ways.
The more obvious one is to help out with the ongoing maintenance, support and claims management of your existing credit insurance policy.

The less obvious way is to do with Capital relief.

Banks and financial institutions must maintain specific levels of capital in case of financial volatility.
If said financial institution has liquidity facilities or other exposures on their balance sheet, they are utilising precious capital on these heavily risk weighted assets.

A Capital relief policy enables the financial institution to de-risk and apply a less strenuous risk weighting to these assets, therefore freeing up precious capital.

Does your financial institution have a capital relief policy in place?

Could you benefit from a no-obligation discussion?


Abacus Credit Insurance Brokers

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