Marsh’sCoverCredit to assist SMEs in managing trade credit risks

While trade credit insurers continue to do battle on pricing for large corporate accounts amid an influx of new players and additional capacity in the market, many are still exercising caution when evaluating proposals from small and medium-sized (SME) firms. In particular, many SMEs operating in the timber, construction and non-food retail sectors continue to be perceived as ‘high risk’ by trade credit insurers and are paying higher premiums as a result.

To assist SMEs in securing trade credit insurance and managing their trade credit risks more effectively, Marsh today announces its enhanced CoverCredit service.  Developed with Coface in the UK, part of one of the world’s leading trade credit insurance groups, CoverCredit includes a comprehensive package of trade credit services, covering credit insurance, credit assessment and collections management.

Only available through Marsh, CoverCredit is designed for businesses with annual sales of up to £10 million, and provides protection against debtor non-payment and insolvency. Cover is provided for trade debtors in the European Union and other agreed countries, and relates to the sale of goods and services.

Tim Fisher, Leader of Marsh's UK Trade Credit Practice, said: “Trade credit insurance and risk management are vital protection mechanisms for SMEs, as one sizeable bad debt could have catastrophic consequences. However, the trade credit insurance market has become increasingly challenging for these businesses to navigate, as insurers have sought to reduce their risk exposures in the worst-affected sectors.

“By working with Coface, Marsh has developed in CoverCredit a solution that is designed specifically with the needs of the small to medium-sized business in mind. We recognise that there are many companies that are continuing to trade successfully in challenging areas of the economy. CoverCredit provides them with the security they need in granting credit to their customers, without the worry of not getting paid.”

Delivered via an interactive web system and with dedicated telephone support, CoverCredit offers an all-inclusive price, fixed for the policy period, which can be paid by interest-free monthly or quarterly electronic direct debit. A discount is available for full payment paid annually in advance.

SMEs can obtain further information by calling 020 7178 43467 or emailing covercredit@marsh.com.