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Specified protection - meets clients needs.
Protects against insolvency and provides cover for UK domestic risk.

SPECIFIC ACCOUNT

Important form of protection for companies who have a large proportion of their business with one customer, a significant new customer, or even one-off contracts. This type of insurance protects the working capital of the business and provides the Insured with cash as soon as possible after insolvency of the principle customer.

Features

1. Up to 95% cover
2. Single account or up to six named buyers
3. Credit limits are GUARANTEED for 12 months
4. Limit increases can be agreed during the policy period in order to support increased trade
5. Premium based on limit of indemnity (minimum premium of £2,000)
6. Up front premium payable
7. Based on losses occurring

Benefits

1. Cover for single customer insolvency
2. Can be assigned to a Bank or Financial Institution
3. Low policy administration
4. Meets individual business needs

DEFERRED CONSIDERATION

Offers clients cover on a significant sum of money either due to them or to be paid out by them via deferred instalments over a specified period of time. It offers buyers of a buyer, for example, to spread payments out over a defined period rather than a one off payment, which could have a major impact on cash flow.

An Example

Change in company ownership. Exiting shareholders of trading companies have two issues to consider when selling a company or shares in a company as follows:

1. Obtaining optimum price for the shares
2. The capital gains tax ultimately payable - which can be deferred

Purchasers have to consider the cost of the business itself and the structure of the payments in line with possible cash flow. Vendors run the risk of not being paid the optimum price from the sale of the shares as well as any deferred capital gains tax obligations they may have should the company become insolvent.

Deferred Consideration Credit Insurance is the ideal vehicle to ensure that Vendors are covered for this eventuality.

Features

1. Up to 95% cover
2. Covers Insolvency during the period of Insurance
3. Credit limits guaranteed for the period of the policy - up to 24 months
4. Limits structured in line with deferred payments - reducing balance if required
5. Premium based on limit of Indemnity
6. Premium payable at start of policy period
7. Policy written on a losses occurring basis

Benefits

1. Effective for tax planning and exit strategy for Vendors
2. Cash flow management for purchasers
3. Peace of mind DUTY

DEFERMENT BONDS

Insolvency guaranteed which cover the payment of sums due to H.M. Customs & Excise. When importing goods into the UK it may be a requirement to pay H.M. Customs & Excise Duty and VAT at the point of entry. Payment for the goods themselves pay not occur immediately therefore creating a cash flow problem.

Features

1. Payment can be deferred by up to 45 days
2. Available on a 12 month ongoing facility
3. No collateral security required - only a standard counter indemnity clause
4. Premium is payable prior to the issue of the Bond
5. Up-to-date management accounts and annual accounts required

Benefits

1. Frees up cash flow for the Importer
2. Does not compromise bank overdraft facilities
3. Minimum administration
4. No Insurance Premium Tax applies