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Banks Love Trade Credit Insurance

Sep 17 Wed,2014

Banks in Botswana are willing to give more attractive loan terms to businesses that are covered by trade credit insurance policies.Throughout 2014, we embarked on an energetic stakeholder education campaign to show the business community just how valuable trade credit insurance can be.One of the key outcomes is how favourably banks now look at companies who have their debtors book insured.Our coverage means entrepreneurs can expand with confidence and earn more leverage when dealing with the banks.The prime advantage being bigger loan facilities.What are the factors that banks look at when appraising a loan application?

Here are some examples:

-          Balance sheet strength

-          Profit margin per unit sold

-          Ability to be a ‘price maker’

-          Track record of collecting credit payments    on time

-          If exporting, political risk of markets in which the company operates.

 Arming your business with a trade credit insurance policy from BECI can improve performance across all of these key factors, which is music to your bank manager’s ears.