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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.