Credit insurance can be used to help businesses with overseas expansion, according to leading credit insurance firm Atradius
, which could give brokers an opportunity.
As more businesses look overseas as economic shifts, new trade deals and fluctuation interest rates impact Australia, financial year 2017 could see more businesses than ever look abroad to continue their growth.
, managing director, ANZ, Atradius
, said that while there are many advantages to expanding a business internationally, there are also many risks.
“Entering overseas markets presents opportunities to grow the business by broadening the potential customer base and increasing profits,” Hoppe said.
“However, with expansion comes risk.
“Businesses must have a thorough understanding of the new market, and put in place adequate protection against late or non-payment from customers, in order to minimise risk to the business.”
Hoppe noted that credit insurance can present businesses looking at overseas expansion with a useful tool as it gives businesses an early warning signal of payment difficulties.
“Organisations with credit insurance can receive early warning of potential payment difficulties,” Hoppe continued.
“Credit insurers can provide access to credit information on companies operating worldwide, and can evaluate the risks of working with new businesses so they can limit unnecessary trading risks.”
Local knowledge and sound advice are also must-haves when looking at international growth and Hoppe stressed that partnerships through credit insurance gives business owners access to both.
“Credit insurers generally have people on the ground in the countries businesses are looking to expand into,” Hoppe said.
“This means they can advise businesses on a wide range of crucial trading factors, such as suitable local distributors to partner with, local customs and how to protect your products and profit.”