View
1.118
Download
3
Category
Tags:
Preview:
Citation preview
page 1
Your trade risks, under control.
Coface North AmericaCoface North America
ocrates Jaen
Coface North America
page 2
Founded in France in 1946; international expansion in 1990s
Subsidiary of Natixis
Rated: A+ by Fitch
A2 by Moody’s
A by S&P
Coface: Worldwide Trade Facilitator
Coface facilitates business-to-business commerce Coface facilitates business-to-business commerce worldwide, offering solutions to all companies – whatever worldwide, offering solutions to all companies – whatever their size, nationality, or business sector – for managing, their size, nationality, or business sector – for managing,
protecting, and financing their accounts receivable.protecting, and financing their accounts receivable.
Coface overviewCoface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 3
Coface Group Key Figures
Coface overviewCoface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
Amounts in millions of euros 2007 2008
Consolidated turnover 1,571 1,682
Insurance 1,111 1,166
Services 250 270
Factoring 210 245
page 4
Global Presence
Canada
USA
Mexico
Peru
Venezuela
Argentina
Brazil
Chile
Panama
Ecuador
Costa Rica
Colombia
Lebanon
Uruguay
Paraguay
Benin
Algeria
Burkina Faso
Cameroon
Mali
Côte d’Ivoire
Togo
Senegal
South Africa
Egypt
Morocco Tunisia
Chad
Russia
PortugalSpain
AustriaBelgiumDenmark
Norway
Netherlands
CroatiaBulgaria
PolandRomaniaFrance
ItalyIreland
Germany
Sweden
UKSwitzerland
Latvia
Estonia
Hungary Lithuania
Turkey
UkraineSlovenia
Czech Rep.
Serbia
Brunei
Djibouti
Luxembourg
Pakistan
Vietnam
Indonesia
Greece
Liechtenstein
Malta
Bangladesh
Finland
KazakhstanCyprus
Australia
New Zealand
Japan
South KoreaChina
India
Malaysia
Thailand Philippines
Singapore
Hong KongTaiwan
Saudi Arabia
IsraelIran
U.A.E.
Bahrain
JordanSyria
Kuwait
Libya
Oman
Qatar
Yemen
Subsidiaries or branches in 67 countries
CreditAlliance partners in 32 add’l countries
Total networkTotal network
9999 countries countries
Slovakia
Sudan
Mauritania
Coface overviewCoface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
Viet Nam
Gabon
page 5
Business Lines
Coface delivers tools that enhance and support a company’s
credit management practices:
Accounts receivable protectionExport and domestic credit insuranceSingle risk guarantees
Corporate ratings and information
Accounts receivable management and debt collection
Accounts receivable finance (factoring)
Coface overviewCoface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 6
Coface in North America - History
20022002 20042004 20052005 20062006 20072007
Coface takes on equity stake in credit reporting agencies, Veritas Group and Justicia
CNA Credit becomes member of Coface CreditAlliance; Joint venture for Coface to provide export credit coverage to CNA Credit policyholders
Coface acquires Kompass Canada franchise
1990’s1990’s
Coface purchases CNA Credit in North America, becomes managing general underwriter for CNA
Coface acquires Kompass USA franchise
Coface North America Insurance Company created
Coface SA – Canada Branch office launched
Export Development Canada (EDC) names Coface as domestic credit insurance provider for its insurance program
Coface Collections North America acquires one of the largest US commercial collection agencies, Newton & Associates
Coface Canada expanded to include all 4 Coface business lines
Coface overviewCoface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 7
Coface in North America – Commercial Locations
MidwesternRegion
WesternRegion
SouthernRegion
Mid-Atlantic& E. Canada
RegionNew England
Region
Regional Head Office Regional Branch Office
Coface overviewCoface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 8
Trade ReceivablesTrade Receivables
ProtectionProtection
Coface overview Trade Receivables ProtectionTrade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 9
Credit Insurance
Credit Insurance flowchartCredit Insurance flowchart
What is Credit Insurance?What is Credit Insurance?
A credit insurance policy ensures that a policyholder will be paid for goods or services sold to its customers
The policy insures commercial accounts receivables against non-payment
Coface overview Trade Receivables ProtectionTrade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 10
Credit Insurance
Benefits of Credit InsuranceBenefits of Credit Insurance
Protection against bad debt loss
Potential to increase sales
Better borrowing position with insured receivables
Credit information resource
Collection services
Coface overview Trade Receivables ProtectionTrade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 11
In depth knowledge of local conditions in emerging countriesIn depth knowledge of local conditions in emerging countries
Maximum 5 years, no minimumMaximum 5 years, no minimum
$1 million to $50 million capacity$1 million to $50 million capacity
Single Risk / Political Risk Insurance
Covers cross-border operations and transactions against loss caused by political events
Coverage include protection against financial loss of an investment due to:
- expropriation or nationalization
- contract termination by a foreign government
- non-payment of accounts receivable due to war or civil unrest
Coface also offers coverage of select single debtor transactions
No countries excluded ‘de facto’No countries excluded ‘de facto’
FeaturesFeatures
Coface overview Trade Receivables ProtectionTrade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 12
Credit Insurance Underwriting Process
Obtaining the financials of your clients, with your help and/or via our Infoline department
Global analysis of the risks via our tools (@rating, database, International network…)
Credit opinions over your requests on each buyers/clients. Expertise in all countries to provide a rapid answer: agreement or set limit
Provide you with a complete insurance covering your transactions worldwide or on your domestic market
Coface overview Trade Receivables ProtectionTrade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 13
CORPORATE RATINGS CORPORATE RATINGS AND INFORMATIONAND INFORMATION
Coface overview Trade Receivables Protection Corporate ratings & InformationCorporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 14
Corporate Ratings and Information
Company information (reports and ratings)Company information (reports and ratings)
International credit reports from 200 countries and territories
@rating Credit Opinions for quick online indication of creditworthiness
Kompass marketing dataKompass marketing dataGlobal buyer and seller database
Advertise your company and find suppliers
Country and Sector Risk RatingsCountry and Sector Risk Ratings
Country @ratings measure how financial engagements are influenced by the economic, financial and political outlook of the country
Sector @ratings measure the average level of default risk posed by companies in individual sectors
Coface overview Trade Receivables Protection Corporate ratings & InformationCorporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 15
The @rating Solution
@rating is a unique, worldwide system of company ratings allowing credit managers to rapidly and reliably assess credit risks.
Available for 50 million companies worldwide, @rating draws on Coface’s twofold expertise in company information and credit insurance.
@ratings express recommended credit exposures on individual companies in a simple manner, with @ representing a $20,000 limit, @@ $50,000, @@@ $100,000, etc.
@ratings can be delivered as part of a credit insurance policy (@rating limits) or as an information-only service (@rating Credit Opinions).
Coface overview Trade Receivables Protection Corporate ratings & InformationCorporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 16
The @rating Solution
What goes into an ?
Company analysisCompany analysis Annual reportsAnnual reports
Bank reportsBank reports
Commercial reportsCommercial reports
Published reportsPublished reports
Economic analysisEconomic analysis
Policy-holderPolicy-holder
Credit Information ManagerCredit Information Manager
Direct Information from debtorDirect Information from debtor
Payment irregularitiesPayment irregularities
Notification exceeded credit periodNotification exceeded credit period
CreditAllianceCreditAlliance
UUNNDDEERRWWRRIITTIINNGG
@rating opinion@rating opinion
Coface overview Trade Receivables Protection Corporate ratings & InformationCorporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 17
Country and Sector Risk Ratings
Macroeconomic expertise
Country Risk RatingCountry Risk Rating Sector Risk RatingSector Risk Rating
The country risk @rating assesses the average risk of payment default by companies in a given country
There are seven different rating grades: A1 to A4, B, C, D
The ratings are regularly updated for over 155 countries
3 risk families:Economic, Financial & Political ProspectsGrowth vulnerabilitySovereign financial vulnerability External over indebtednessForeign currency liquidity crisis Banking sector’s fragilities Geopolitical and Governance vulnerabilities
Company’s payment behavior
Business Climate
The sector risk @rating assesses the average risk of payment default by companies in a given sector
To calculate sector @rating, Coface combines 3 types of measurements: Economic prospects of the sector Companies’ financial situation Coface payment experience
There are 10 different rating grades: ranging from A+ for the lowest risks to D for the highest risks
The ratings are regularly updated for 15 economic sectors
www.coface-usa.comRatings, payment incident index and sector risk assessment are available on
Coface overview Trade Receivables Protection Corporate ratings & InformationCorporate ratings & Information Trade Receivables Management Trade Receivables Finance
page 18
Trade Receivables Trade Receivables ManagementManagement
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables ManagementTrade Receivables Management Trade Receivables Finance
page 19
Receivables Management and Collection
Coface Collections North America, Inc. (CCNA) offer comprehensive, flexible, collection services in the US and abroad.
CCNA main office is located in Metairie, LA
Branch offices in: Vancouver, WAEast Windsor, NJDenver, CO
Coface has the largest international collections network in the Coface has the largest international collections network in the world in terms of geographical presence.world in terms of geographical presence.
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables ManagementTrade Receivables Management Trade Receivables Finance
page 20
Receivables Management and Collections
A full-service commercial debt recovery by credit professionals
The I.N.C. approach to commercial debt recovery:
InvestigationWe employ sophisticated investigative resources to gather and analyze information in order to achieve optimal results.
NegotiationThe financial information and other pertinent facts that we gather enable our collectors to negotiate from a position of strength.
CollectionOur approach combines state-of-the-art technology and resources with expertise, experience and finesse
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables ManagementTrade Receivables Management Trade Receivables Finance
page 21
Receivables Management and Investigation Services
In addition to our professional collection services, we also provide:
C.A.R.E.: Coface Accounts Receivable ExpressLow-cost, automated online collection service for early past-dues
Accounts Receivable Management Outsourcing
Investigation ServicesReal estate Broker Price Opinions (BPOs)Asset and liability investigationsBackground checksCollateral property valuation
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables ManagementTrade Receivables Management Trade Receivables Finance
page 22
Trade Receivables Trade Receivables
FinanceFinance
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables FinanceTrade Receivables Finance
page 23
Receivables Finance and Factoring
Our mission is to help our clients Our mission is to help our clients meet their business objectives and meet their business objectives and grow their companiesgrow their companies
Coface Credit Management North America, Inc.Coface Credit Management North America, Inc.
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables FinanceTrade Receivables Finance
page 24
Receivables Finance and Factoring
Receivables Financing Provides Many Benefits
Protection from bad debt lossesWe will determine the creditworthiness of your customersCoface assumes the risk of non-payment due to insolvency
Professional collections departmentWe handle the credit and debt collection functions
Streamlined operations and managementReceivables financing reduces your need for a credit and collections
departmentOnline management system
Build your credit ratingFactoring will help you pay your suppliers on time and improve your credit
rating
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables FinanceTrade Receivables Finance
page 25
Receivables Finance and Factoring
How does it work?
Coface systematically purchases the qualified receivables
Any credit risk will be borne by Coface
The amount and type of receivables that are financed are used to determine the financing rate of the company
When you open your factoring account, we will notify your When you open your factoring account, we will notify your customers to submit payments to us on your behalf. customers to submit payments to us on your behalf.
We will treat your customer with the same degree of We will treat your customer with the same degree of integrity and professionalism that you provide. integrity and professionalism that you provide.
Your Coface account executive will be in continual contact Your Coface account executive will be in continual contact with you. with you.
Account activity can be managed by you through our Account activity can be managed by you through our online system.online system.
Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables FinanceTrade Receivables Finance
page 26
Scenario 1– Product: EXPORT CREDIT INSURANCE– 2007 sales $907,000 – 2008 sales $1,000,000– 2009 sales $ 1,900,000 YTD (was able to offer credit term,
add new accounts (Caribbean, L/A) thus increasing sales)
Scenario 2: – Product: Domestic Factoring– 2009 Starting sales $1,500,000 (02/01/2009)– YTD revenue $3,000,000 (season over) – 80% advance – Commission 1.5% – Advance rate of Libor plus 4.5%– Monthly Minimum $1,000.00
110% Sales Growth in 2 years
100% Sales Growth in 9 Months
We Help You Make Dramatic Changes in Revenue
page 27
Client: Distribute Sheet Music and related Media Products– 2004 sales $55,803,390 Credit losses $125,859.79– 2005 sales $54,683,587 Credit losses $23,902.05– 2006 sales $51,696,050 Credit losses $517,000.00
* 3 Yr Average Bad Debt Expense $223k, 0.41% of sales
In 2007 Company enters into a global credit insurance program with Coface– (2007- 2008) Sales $57,000,000 Credit Losses $30,000.00– (2008-2009) Sales $60,000,000 Credit Losses reported 2008
($50,000.00)
* 2 Yr Average Bad Debt Expense $40,000k, 0.07% of sales
We Can Help You Reduce Bad Debt
page 28
Help businesses double or triple in size.
Protect clients from hundreds of thousands of dollars in potential losses.
I can provide an unlimited supply of capital.
Represent a global financial services group that counts 45% of the worlds 500 largest companies as clients
Working with me allows you to tap into a group that makes 15,000 credit decision per day and manages $500 Billion of global trade.
Quantifiable Reasons to Business with Me
page 29
Thank youThank youSocrates H. JaenExclusive Agent for Coface North AmericaLic. No. CA. 0789553Lic. No. NV. 525120Lic. No. MT. 700306L.B. Spurrier Insurance Agency Inc.333 S. Anita Drive, Suite 850Orange, CA 92868714-460-2635 Office| 714-460-2644 Fax| 909- 904-8233 CellSocrates_Jaen@coface-usa.com | www.Coface-usa.com
Your Trade Risks, Under Control: Accounts Receivable Insurance | Business Information | Factoring | Commercial Collections
Recommended