Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Euler Hermes UK Rotork plc Keeping business flowing Export case study It is widely understood that the principal advantage of credit insurance is to protect a business against the sudden and unexpected insolvency of one of its customers. History is indeed littered with examples of often long-standing and well-known businesses that have failed with disastrous consequences for those in the supply chain. Rotork, the international manufacturer of industrial valve actuators and control systems, takes a slightly different perspective. It sees the main advantage as being the information and intelligence that the insurer can bring on potential trading partners. And it uses this information for maximum commercial advantage to fuel further growth. A business that can trace it roots back to the 1950s, Rotork operates around the clock, on a truly global scale. It is present in 94 countries , with a direct presence in 33 of these. In charge of managing the credit policies and procedures across the group is Group Credit Controller Chris Franklin: “We actually write our credit management procedures around the terms and conditions of the credit insurance policy,” he says. “The actual ‘insurance’ element of credit insurance is only one of the motivators within the business,” he continues. “The other real advantage we derive is from information that our credit insurer, Euler Hermes UK, can provide on companies in different parts of the world with whom we want to do business.” “We can apply for a limit, and if there is sufficient information to support the request then a limit can be quickly agreed. If our insurer Chris Franklin Group Credit Controller Rotork plc Chris stresses that the occasions on which a limit is refused are few and far between: “At any one time up to 90% of our turnover can be covered, so if a limit is refused, there is a good reason for it.” Rotork has been credit insured for over twenty-five years, and Chris does not hold with those who refuse to work with their insurer in sharing information: “It is just not living in the real world,” he says. But similarly, Chris sees the relationship as being one where responsibility should be shared: “Decisions should never be taken on financial information alone,” he says. “If they were, then only 50% or so would ever be positive.” Chris explains that Rotork’s customers can be comparatively small valve makers, but their customers (i.e. the end user) are usually major businesses in the oil & gas, power and utilities sectors. The contracts they are supplying to are often critical infrastructure projects. It is this commercial information that Chris needs his credit insurer to understand: Euler Hermes UK 1 Canada Square London E14 5DX Tel: +44 (0)20 7512 9333 Fax: +44 (0)20 7512 9186 www.eulerhermes.co.uk “This is what has particularly impressed me about working with Euler Hermes,” he continues. “Their underwriters have taken the time to visit our larger subsidiaries and really understand how our business operates. They understand, for example, that we have long and established relationships with a good many customers, and can demonstrate the best practice in credit management that exists within our teams.” “Euler Hermes,” he adds. “ have taken the time to learn about our business, look beyond the financials and listen to our opinions before giving us their own. Although we work through our brokers Bluefin the majority of the time, we can have direct access to Euler Hermes’ underwriters when we need them.” “They made us promises at the beginning and have kept them.” For more information you can: Call us on: 0800 056 5452 Email: [email protected] Visit our website: www.eulerhermes.co.uk Euler Hermes UK is a branch of Euler Hermes Europe S.A. (N.V.) Branch registered in England and Wales with no. BR015404, registered branch address 1 Canada Square, London E14 5DX. Authorised by the National Bank of Belgium and the Belgian Financial Services and Markets Authority, and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. CS – Rotork 04/13 does not agree, then it highlights to us that perhaps more work needs to be done and further information provided. If there is still an issue, then we can of course take the decision to self insure, and take the risk upon ourselves. What we would never do, however, is take on any unnecessary risk. In certain cases where a limit is declined, we will seek advance payment or a letter of credit before doing business.