Despite being the main revenue driver for his company Global Trade Credit, Graham MacLachlan never feels like he’s selling anything.
"I am just providing information to educate people, so they can make an informed business decision and they can decide what is best for them."
In the case of trade credit insurance, once a business operator understands how it works, the decision is usually pretty obvious.
Trade credit insurance, also known as accounts receivable insurance, is a product that can be used as a financial instrument to give businesses greater access to capital. It also manages threats that are beyond a company’s control.
"It is truly remarkable how many businesses insure pretty much everything except their receivables – despite the fact that receivables are generally a company's #1 asset.
"Trade credit insurance is the best-kept secret in business," MacLachlan says. "It can be utilized purely to mitigate risk, or as a financial instrument that helps high-growth businesses expand with stability – or both!
"A policy also expands the business's ability to grant credit – often dramatically, and grow sales – with one simple, affordable policy. Having a policy even helps you get better terms with the banks."
Diverse benefits to companies working domestically or in international markets have earned trade credit policies an interesting nickname.
"The benefits to the business are huge," says MacLachlan, who has been a leader in the international trade industry since representing the Manitoba Government in the early 1990s. "People call it 'sleep insurance' because the CEO, the shareholders, and all other stakeholders can sleep well at night, knowing that if something completely unforeseen occurs, the company is still safe. It even protects a business from the perils of non-payment."
MacLachlan's role as a broker is to ensure that Global Trade Credit customers have the policy with the best coverage for their unique needs – and at the best rates.
"Even for companies that already have a policy, a broker can be very beneficial," MacLachlan explains. "A trade credit insurance broker works much like a good lawyer, providing representation on a critical matter, and knowing what is best for you."
A good broker can save a business money in various ways, while helping access capital to facilitate high, sustainable growth.
"The cool thing is, you don't pay us a cent for all the work we do on your behalf," notes MacLachlan. "We are paid by the insurance companies once we have assisted you in finding the best fit for your business."
It's also important to note that there are cancellable and non-cancellable insurance carriers – and you likely won't know what you are working with unless you are represented by a broker.
Trade credit insurance also signals strong corporate governance; a business can use the policy to showcase professional protocols.