TOUCHPOINTS: Questions to ask your clients about receivables insurance to increase loyalty and opportunities.
Nurturing relationships with existing clients or prospecting new clients requires fresh topics that differentiate you from other bank professionals.
Basic Knowledge and familiarity with receivables insurance is important, and knowing when to bring an expert in will build trust and solidify the relationship with you as the cornerstone.
Here are 4 easy questions about receivables insurance to help you start the conversation:
Do you currently Insure your receivables?
Chances are, they either have never heard of receivables Insurance or are insured with EDC and don't realize that their are other options.
If they are currently fully utilizing their operating Line, this is a great opportunity to increase their borrowing capacity through receivables insurance, with the added benefit of safeguarding their largest unsecured asset.
If they are currently insured, see the next question.
If not currently insured, don't feel you need to be an expert. Some further questions to ask before introducing a specialty broker are:
- Do you have a concentration of accounts receivable with more than 20% to one buyer? Policies can be customized to cover risk from select buyers.
- Would you be able to grow your business if you could sell to customers on open terms?
- Did you know that receivables insurance is available even if you only sell to Canadian customers?-
-There's never been a better time to consider receivables insurance given the amplified risks in the current economy. Do you have a plan? Commercial bankruptcies are predicted to increase up to 30% in the year ahead.
-Is YOUR company at risk if one of your customers or suppliers fails?
If they've said yes to any of your questions, it's time to make that introduction.
How is your current policy working for you?
If they are insured, you should recommend that your bank is named on the policy (Bank Beneficiary or Direction to Pay). This will allow you to increase borrowing capacity.
There may be coverage gaps on their current policy on key buyers that other insurers may be able to cover. Did you know that there are non-cancelable coverage options available?
If they haven't taken their policy to market recently or are relying on a general P&C broker, there may be opportunities to optimize their policy (pricing, coverage, and structure) by engaging a specialist broker.
Receivables Insurance Specialty brokers can make this an easy project by reviewing their current policy, filling out one form to receive quotes from all insurers, and help make an informed decision through a cost benefit analysis. All for no additional cost to the policyholder.
Is your sales growth stagnant due to your credit appetite with existing customers?
Increasing limits on existing customers can be challenging. Are internal comfort levels of credit exposure limiting your growth? Receivables insurance is a tool that allows companies to increase credit limits while not increasing their risk of loss.
Could you grow your business by exporting?
Making the decision to export comes with a new set of credit challenges and acquisition costs. Foreign laws, access to information, political risk, and localized trade practices are hurdles in making the decision to expand. Receivables Insurance can remove those barriers, and give you the competitive advantage of offering open terms.