Surety and Trade Credit Market

Assistance for Surety and Trade Credit Markets

The assumption of financial risk becomes far more hazardous during an economic downturn, with the traditional principles of risk assessment and loss mitigation becoming less reliable.

MCR Business Consulting now offers a package of assistance, specifically aimed to support Surety and Trade Credit underwriters when the initial early warning signs are identified - before things go wrong.

We work with all types of risk underwriters to assess the specific cases in advance, look at the positive options in the case of impending business failure and help mitigate losses to the unsecured creditor, should the company fail.

This is quite different from traditional methods of assistance which have always been put into action far too late to assist underwriters.

The Early Warning Signs

As well as the usual early Warning Signs that are reflected in your client's financial statements, such as falling turnover, an inability to reach break-even point, poor balance sheet value, marginal cashflow or poor debt servicing, look out for the non-financial Warning Signs, such as:

• ­A change in the auditors of a company's financial statements;
• ­Unexplained delays in the receipt of audited accounts or management information;
• ­Abrupt changes in a customers basic business plan or an increase in its non-core activities;
• ­Sudden changes in the composition of the board of directors;
• ­Unfavourable trends in your client's markets;
• ­A customer's reluctance to provide detailed explanations of items in its financial statements.

What we can offer

• ­A FREE consultation on any current situation where a potential problem is identified;
• ­Guidance and expertise in securing / collateralising your position on a case;
• A meeting with the client in order that you can gain an independent assessment of both financial and non-financial risks;
• ­A full Independent Business Review on cases that merit this level
  of detail;
• ­Reporting back to you and talk you through all of the options available.

We understand the potentially powerless position of an underwriter once an administrator takes charge and this is why an early contact with MCR is important.

What you gain

The external objectivity we bring will give you a view that:

• ­Is not influenced by a desire or pressure for premium or income growth;
• ­Prevents the investment of further time or funding in situations where this is will not effect a return;
• ­Provides reassurance in the event of a corporate failure.

For more information on this please contact Steve Manwaring, Director