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In the past, companies with significant receivables may have found it difficult to access working capital given the perceived inefficiencies in trade finance and traditional trade credit insurance.

Trade Finance can help companies solve just this problem. In conjunction with our Global Limits Manager system, Trade Finance smoothly combines securitization techniques, technology and trade credit insurance. By tapping into the wholesale markets, companies can benefit from longer term savings in their cost of funds. In addition, companies can also get higher advance rates against their receivables portfolio, raising more capital for expansion, investment or other purposes.

Features & Benefits

  • Aimed at larger companies seeking to improve cost, the advance rate and availability of finance secured upon pools of trade receivables
  • Global Limits Manager provides transaction visibility at a granular level
  • Superior documentation links excess of loss cover directly to funding source and provides contract certainty
  • Security provided by policies issued by a highly rated insurer

How It Works

  • Finance is usually based on the sale of a company’s receivables to a bank or other funder on a regular basis (weekly, fortnightly or monthly)
  • Normally there is no need for the company’s buyers to be notified of the sale of the receivables or to change their existing payment arrangements
  • The company then receives payment of a purchase price (based on the insurance policy reserves agreed upon with us) for the receivables and continues to deal with its buyers for collections and recoveries
  • Collections made from the company's buyers enable the finance and service charges to be met
    The transaction is supported by our specialist trade credit insurance policy