The Independent Automotive Aftermarket Federation (IAAF) has introduced two new trade credit insurance schemes for SMEs and larger businesses in the aftermarket, offering protection against the effects of bad debts and bringing a wide array of benefits.
The schemes, from one of the UK’s leading independent specialist trade credit insurance brokers Financial and Credit Insurance Services Limited, are exclusively available through the IAAF to its members.
One of the schemes is specifically designed for SMEs with turnovers of up to £5million, offering affordable premiums depending on turnover and liability level, with a variety of liability levels to suit a business’s debt exposure. Other features include international overdue debt collections options to assist with debt management, and domestic and international trade protection.
There is also a scheme tailored for businesses with a turnover in excess of £5 million, with a range of policy structures available depending on business needs, as well as optional endorsements and add-ons for full scope of insurance cover, while providing a full assessment of credit insurance requirements.
Both insurance schemes cover 90% of the value of insured losses, with non-obligation quotations provided.
The features for both schemes come with a raft of benefits to members, including the removal of risk of trading with new or unknown customers, maintaining strong positive cash flow and decreasing bad debt reserves while strengthening the company balance sheet. There is also access to greater finance and funding opportunities, as well as to risk management services on customers and industries.
All policy holders are given a dedicated customer contact and access to the insurer’s web portal, allowing businesses to easily manage their policies online.
IAAF chief executive Wendy Williamson said: “Trade credit insurance can be invaluable to any organisation, made even more evident in January with the collapse of Carillion which saw an estimated £100m+ owed to uninsured creditors. We’re delighted we can now offer this service to our members throughout the aftermarket from such a reliable, reputable credit insurance partner.”
Executive Director, Hannah Lyon-Wall of Financial and Credit Insurance Services Limited said: “Some of IAAF’s members are already taking advantage of the scheme, and we are adaptive and supportive by tailoring a suitable scheme to fit in with their requirements.”