Vital Stats: Safeguard Your Business with Coface Trade Credit Insurance
Financial losses. Cash flow challenges. Reputation damage. No company wants to face nightmares like these that could disrupt operations, limit growth opportunities, and squash competitiveness.
Fortunately, there’s a valuable tool that can help you manage risks associated with credit sales, ensure the continuity of your operations, and give you the confidence you need to pursue growth opportunities: Coface Trade Credit Insurance (TCI).
With decades of expertise, TCI solutions offer you the assurance needed to expand your sales both in domestic and international markets.
Minimize Risk to Maximize Trade
Standard & Poor’s predicts that the corporate default rate will grow from 2.5 percent to 4.25 percent by March 2024. Outstanding debt is a primary factor, with 25 percent of corporate bankruptcies linked to unpaid invoices. (Use our Risk Calculator to see how much additional turnover you would need to generate in order to absorb just one unpaid invoice).
Supply chain disruptions caused by increased transportation costs, elevated raw material expenses, labor shortages, and rising interest rates are other challenging factors that that could lead to your customers’ inability to meet their financial commitments. This is a scenario to avoid when engaged in trade.
Do More with Access to Better Financing
In today's volatile economic climate, stability can be elusive. Borrowing money has become increasingly costly, with interest rates reaching levels not seen in 16 years. Many lines of credit are being adjusted monthly, resulting in substantial interest rate hikes for businesses.
These higher rates translate to increased capital costs and a detrimental effect on cash flow, posing a significant risk to your overall business health. Coface TCI offers a solution by potentially lowering your borrowing costs or enabling you to secure larger loans.
Go the Distance at Home and Internationally
Global organizations are already using TCI, with 80 percent of international trade backed by some form of trade credit.
As U.S. exports surged by 46 percent from 2020 to 2023 (rising from $585.6 billion to $858.7 billion), Canada and Mexico maintain their positions as the primary U.S. trade partners. Nevertheless, the market is undergoing a transformation as emerging markets seize fresh trade opportunities.
In fact, as domestic consumption grows in countries like China, global demand is shifting to a greater focus on developing nations, according to a report from global management consulting firm McKinsey & Company. “Emerging markets are expected to consume almost two-thirds of the world’s manufactured goods by 2025,” the report stated. “By 2030, developing countries are projected to account for more than half of all global consumption.”
Purchasing a Coface TCI policy can help companies like yours tap into new markets domestically and globally with the protection needed to grow reliably and safely.
Protect Your Business in an Evolving Market
As markets evolve, it's crucial for businesses to adapt. TCI provides valuable protection for your business, safeguarding your company by covering losses from unpaid debts and insolvency and allowing you to confidently expand your sales to both existing and new customers at home and globally. TCI can also enhance your access to better and more extensive financing opportunities.
To learn how to leverage Coface’s expertise when making credit decisions, visit us HERE.
