Sales are the life blood of a banks commercial customers. Helping them know, really know, who their strongest customers are may help them use flexible terms to grow sales.
If they grow safely, the bank lends more, safely, than they would have.
If you don't introduce them to the concept, your competitor might.
How many times have your banking customers told you their customer is as good as gold.......
Insolvencies happen every day, for reasons you can't see coming...... antitrust lawsuits, a chemical spill that cut off water supplies to Virginians, the Pink Slime news story, etc....... These unexpected events took down companies such as Target Canada, Golden Gurnsey Dairy, AFA Foods, Owens Corning..... and thousands more. Protecing your customer from the unexpected catastropic loss can be the difference in ensuring their suvival.
Using TCI carriers to help monitor you clients customer base can hlep your client find out before shipping or even accepting an order, that the customer or prospect is not credit worthy.
Utilize the TCI reporting significant past dues, you can see the bad debt before it happens
Verso/NewPage Paper (Jan 26, 2016) Less than 13 months after buying NewPage, paper manufacturer Verso Corp. is asking for Chapter 11 bankruptcy protection. Memphis-based Verso Corp. (OTCQB: VRSZ) announced the voluntary filing on Tuesday morning in the U.S. Bankruptcy Court in the District of Delaware.
More Notable Insolvencies..........
Hancock Fabrics, Inc (Feb 2, 2016) One of the largest fabric sellers in the United States, sought protection from creditors for the second time in less than a decade, saying it will use the bankruptcy to explore a sale, close stores, and ramp up its online presence
So Who's next? Sears? Any Metal Processors? Volkswagen (if litigation gains steam)? Who's Next in Energy? Mining? Which Way will the dominos fall?
Your commercial customers can gain market share by offering creative
terms, without taking on more risk, growing their sales
Banks may also utilize a speicalty Trade Credit Insurance policy for the bank itself. Ask your local Crescendo Trade representive to find out more
When used properly, Trade Credit Insurance (TCI) can help banks safely grow their
borrowing by helping the bank increase advance rates on A/R up to 90%, and advance above
current A/R concentration restrictions
Let Crescendo Trade navigate the challenges for you, ensuring safe utilization
of TCI to help both you and your commercial customers grow
Banks & Trade Credit Insurance