The Scenario
We were contacted by Jack Mitchell of Close Brothers to assist on an enquiry for a time sensitive MBI for this £17m Turnover business operating in the Electrical Design and Build Sector.
The Challenge
- Internal Credit Limit Gaps
- Lack of cover on retentions
- No cover for binding contracts
- Quick turnaround required to meet completion date
Our Response
- Full Market Review highlighting the speed of turnaround required
- Additional info requested from prospect to assist in limit challenges
- Retentions and Binding Contracts cover highlighted as key drivers
The Result
The right home, first time
TMHCC delivered on all fronts and showed a willingness to work with us from the outset, putting best foot forward on limits and pushing these with their risk team day one.
Take on Retentions Covered
TMHCC will cover retentions for the client, for works already completed prior to the policy starting, so long as the debtor has an active credit limit. This unique feature gave the founder and client more certainty.
Binding Contracts Cover
Working on legally binding contracts often means that you can’t simply leave site if the insurer downgrades cover on a particular debtor. By including 3 months of BC cover, it gives our client time to complete the works or for the debtor to provide updated financials to the insurer, to hopefully reinstate their limit.
Conclusion
Utilising a specialist Credit insurance broker has ultimately enabled the funder to complete on this deal. Although the initial enquiry was due to credit limit issues, the client now has a policy that is more bespoke, and offers more protection over a variety of different scenarios. A funders in house BDP is sometimes the right thing for the client, but exploring other options here has certainly paid off for all parties.
