Coface launches an innovative offering for SMEs: EasyLiner, a simple on-line solution to protect against unpaid invoices
According to the Insolvency study for the first quarter of 2015, recently launched by Coface, the banking sector has gradually reduced the exposure on financing the private companies which developed local activity. This happened amid an increasingly rate of bad loans, under the pressure of growing reserves and financing lines withdrawals by the mother banks in 2009-2011. Thus, private companies have undergone a double shock, namely:
(i) The increasingly pressure of loans reimbursement to the banks;
(ii) Lower revenues amid the demand contraction, and also a massive reduction of lending process. Thus, since 2008, the private companies have been more oriented towards financing by extending the collection and payment terms in their commercial relations with their business partners.
All these have determined that, over the past eight years, the receivables reported in the balance sheet by private companies to double, from 167 BEUR (2007) to over 310 BEUR (2014).
Amid funding restrictions that have persisted in the period 2009-2012 and was more pronounced for SMEs, SMBs had to face the greatest difficulties, registering:
- the most extended term of receivables collection, and the fastest growing of the collections terms in the last 5 years (average collection period soared to 244 days for companies with turnover <100 K EUR)
- highest level of losses
- lowest level of capitalization, amid a massive indebtedness.
Easyliner - Coface insurance dedicated to SME's
In order to meet the needs of the small and medium sized companies, Coface has developed a tailored SME offering with two aims in mind: protection and accessibility.EasyLinerprovides quality cover adapted to the needs of SMEs, as well as an easy subscription process, leaving businessmen free to concentrate on their core business.
For a fixed price payable in instalments,EasyLineris a simple turnkey policy, including:
- monitoring that gives SMEs information on the quality of their customers in order to limit the risk of unpaid invoices,
- collection of unpaid invoices and rapid indemnification in case of a claim.
Coface has also developed a completely new way of subscribing to credit insurance policies on-line. Eligible SMEs will be able to configure online the insurance protection that is most suited to their profile. In just a few minutes, businesses can put in place protection against unpaid invoices, and if they wish, speak to an advisor from the integrated hotline.
Launched in Spain and the UK,EasyLinerwill be rolled out progressively in the 66 countries where Coface is present, including France during the fourth quarter, with solutions configured to take into account local market specificities, particularly with regards to payment due periods.
"SMEs need to be able to concentrate on running and growing their business, in a climate of trust. They need solid insurers who bring them stability by protecting them against unpaid invoices. With EasyLiner, Coface’s objective is to provide protection against unpaid invoices to SMEs everywhere in the world – there is currently no country in the world where this type of solution is currently available", says Constantin Coman, Country Manager Coface Romania.
Innovation has been at the heart of the Group’s strategy since 2011. Coface concretised its efforts at the end of 2012 with the launch ofTopLiner, which has been well-received by the market. Several product launches are scheduled this year. The group’s policy of innovation is based on an intense rhythm of new product and services introductions as well as constant improvements to its existing offerings in the coming years.
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