Friday, January 4, 2013

The Contractor's Business Coach Blog ? Trade Credit Insurance Policy

The following was emailed to me from one of my most cherished contacts. She passed along some great news about a service you might want to check out. Thanks? ? Ron

Dear Friends,

As many of you know, Tridon Industries was financially crippled after a fireproofing project that we performed was not paid by the parties involved.? Granted, we were not the only ones that were hurt by the callous disregard for our livelihood but it put my company, employees, their families and my family in jeopardy.? It is and will be a long road to offset the $250,000 loss that we sustained but we are slowly pulling ourselves up by the boot straps and marching forward.? As I am sure every business owner can understand, especially those in construction where the net margins are in the 2-5% range, this type of financial loss can put a severe strain on even the hardiest of companies and it has for us.

Surprisingly, we learned after the fact of a little known secret that would have saved us from having to go through this hardship.? If we had insured our receivables to include this project, we could have received 90% of the outstanding amount due minus the deductible and a portion of our legal fees would have been covered by the insurance company.? The secret that we have discovered is known as Trade Credit Insurance and for all businesses that provide a service and/or sell a product; it has proven to be a life saver over and over again at least for the companies that knew the secret!! ?I sincerely wish I could go back in time to 2008 through 2010 and had purchased a Credit Insurance Policy to safeguard our accounts receivables.? It would have protected us from clients that filed bankruptcy; insolvency and there were a few of those; and/or companies who failed to pay their legitimate bills. It would have freed up a lot of cash as our Banking Loan Officer would have increased our credit lines knowing that the receivables were insured.? One of the primary benefits of the policy is an increase in sales without the worry of additional personal collateral.? I hope that by sending this letter you can learn from our experience without having to endure a similar financial pain.

After much contemplation and belief in this specific insurance product ourselves, we decided to purchase the Credit Insurance Policy against future losses because after all we are in the construction industry and it is becoming the norm rather than the exception. ?We believe so strongly in the benefits that this type of insurance has to offer especially for small companies that we made the decision to insure our receivables and are waiting to hear the outcome as far as the credit worthiness of the customers that currently owe us money.

After much research into the different brokers, we decided to go with TCI Advisors, Inc. and the reason:? they are small business owners themselves that have combined o75+ years in construction; manufacturing; supply chain distribution, insurance, marketing and customer service experience to make this company a formidable force to be reckoned.? In addition, they have walked in our shoes and that is the reason they started the company.? ?So far we are learning a lot about what we should be looking at versus what we have all in the construction industry have been trained to overlook.

Considering all of the money that we as business owners spend on insurance coverage, this policy is a definite must to avoid the pains that Tridon Industries went through.

If you would like to talk to me about the Benefits of Credit Insurance please feel free to reach out to me at 800-760-8044.

In the current political and economic climate, it is foolish not to consider using Credit Insurance to safeguard your Accounts Receivable Assets.

?

MaryBeth Yannessa
President

Tridon Industries, Inc.
371 Circle of Progress Drive
Pottstown, PA 19464

Phone:? 610-323-6800 extension 101

Fax:? 610-323-8401
PAOAGHIC #: PA013941
www.tridonindustries.com

Tridon Industries, Inc. is a Certified Woman Owned Business!!

Ask?Me How?I can Help with Construction Defect Problems!!

Source: http://www.contractorsbusinesscoach.com/blog/?p=779

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