Insurer launches coverage for SMEs

Insurer launches coverage for SMEs | Insurance Business

Insurer launches coverage for SMEs
Coface Australia has launched a comprehensive trade credit insurance product aimed at small to medium businesses, it has been announced.

Easyliner, as the product has been named, “provides information about the credit quality of your customers, debt collection services in the event of customer default, and insurance if your customer is insolvent or otherwise unable to pay due to non-commercial reasons,” according to Paul McGahen, chief executive of Coface Australia.

The product fills a gap in the market for Australian SMEs looking to protect themselves from a credit risk stand-point and McGahen says the policy offers an import fail-safe for Australain companies.

“In a market where on average 25% of companies fail due to unpaid debts, Easyliner is aimed at Australian SMEs that want to ensure that they don’t become a statistic.

“The security of knowing that your trade receivables are protected against non-payment is invaluable, especially in tough economic times. A recent market study found that over 50% of export trading corporations experienced overdue payments, all the more reason to be prepared for non-payment.

"According to the Australian Bureau of Statistics, 96% of Australian businesses are small businesses. So there is a definite gap in the market for SMEs that want comprehensive protection against client insolvency and protracted default.

"In addition, prior to the launch of Easyliner there was no credit insurance available in Australia for SME exporters. This in a market where approximately 18,000 small businesses, or 40% of all businesses exporting goods, are exporters.  Easyliner bridges these crucial gaps in the market."

McGahen believes that Easyliner offers SMEs great preparation for any economic outcome and noted that the company “have been overwhelmed by the interest” in Easyliner since its soft launch in November.

“Easyliner is a solution for small to medium sized businesses that want to be best prepared for any future economic conditions. Whether the economy is booming or shrinking, the risk of payment default remains and Easyliner provides peace of mind in a volatile market."