LONDON, 5 January 2009 –

With insolvencies set to increase in 2009, some 20% more of SMEs have turned to credit insurance this year to protect their balance sheet than in 2007. In response, the UK’s leading credit insurance broker Aon Trade Credit has launched Aon Tradeability. Dedicated to the smaller business, the new "one-stop-shop" service provides insurance cover for bad debt, knowledge on customers’ ability to pay and a route to additional working capital finance.

The insolvency rate for small companies is expected to rise by 41% by the end of 2009*. SMEs are facing a vicious circle of customer insolvency and their inability to pay invoices – in turn meaning suppliers themselves will be unable to sustain a viable business when credit is scarce.

Aon, partnering with the UK’s largest credit insurer Euler Hermes UK, has created a simple and straightforward solution to support and underpin SMEs’ credit management. The service comprises:

• credit insurance to protect against bad debts
• dedicated SME service team to support the company’s credit management function
• recommendations on enhancing current credit procedures
• assessment and credit rating for all customers
• specialist advice on credit limits and claims
• online access to customer information
• debt collections.

Elizabeth Jenkin, director at Aon Trade Credit, said: "Today’s volatile economy means SME balance sheets are under pressure from customer defaults, as well as more restrictive bank lending. We wanted to create a simple product to give peace of mind, whilst developing a service that reinforces the credit management function. While we’re offering an accessible and cost effective solution, we’ve brought in the best bits of the service we offer to our larger clients – including access to customer insight and specialist advice on setting appropriate credit limits on your customer base."

Ends

*2008 survey by R3, trade body for insolvency practitioners

 

For more information contact:

Alexandra Lewis

020 7882 0541

 

 

Alexandra.lewis@aon.co.uk

 

 

 

http://aon.mediaroom.com http://aon.mediaroom.com/index.php?s=58.www.eulerhermes.co.uk

 

Safe Harbour Statement:

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only.

http://aon.mediaroom.com/index.php?s=67

 

 

 

About Aon

 

 

Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its 36,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was named the world's best broker by Euromoney magazine's 2008 Insurance Survey. In 2008, Aon ranked highest on the Business Insurance ranking of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues. Aon also was ranked by A.M. Best as the number one insurance broker based on brokerage revenues in 2007 and 2008, and was voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. Sign up to receive Aon news alerts by email or RSS feed at:

 

Euler Hermes

 

Euler Hermes is the worldwide leader in credit insurance and one of the leaders in the areas of bonding, guarantees and collections. With 6,000 employees in over 50 countries, Euler Hermes offers a complete range of services for the management of B-to-B trade receivables and posted a consolidated turnover of €2.1 billion in 2007. Euler Hermes has developed a credit intelligence network that enables it to analyse the financial stability of 40 million businesses across the globe. The group protects worldwide business transactions totalling €800 billion. Euler Hermes, subsidiary of AGF and a member of the Allianz group, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor’s.